SAN DIEGO & MEDFORD, Mass.--(EON: Enhanced Online News)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against PixarBio Corporation (Other OTC: PXRB) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of PixarBio securities pursuant to the company's private placement that closed on October 30, 2016, and/or publicly traded on the open market between October 31, 2016 and January 20, 2017, for alleged violations of the Securities Exchange Act of 1934 by PixarBio's officers and directors. PixarBio, a specialty pharmaceutical/biotechnology company, focuses on the pre-clinical and clinical development of neurological drug delivery systems for post-operative pain.
“[t]here were no changes in our internal control over financial reporting … that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.”
View this information on the law firm's Shareholder Rights Blog:
PixarBio Accused of Engaging in Manipulative and Deceptive Activities
According to the complaint, on October 31, 2016, PixarBio merged with BMP Holdings Inc., a division of the company, and began trading on the over-the counter-markets. In a press release that same day, PixarBio touted the company's development prospects and impressive reputation. On November 15, 2016, PixarBio filed a Form 10-Q for the nine month period ended September 30, 2016 with the U.S. Securities and Exchange Commission ("SEC") stating that "[t]here were no changes in our internal control over financial reporting … that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting." However, the complaint alleges that PixarBio officials failed to disclose that the market for the company's securities exhibited deceptive activities and that the company's assertions in its public statements and filings were misleading.
On January 23, 2017, the SEC issued an order suspending trading in the securities of PixarBio. The announcement attributed the suspension to manipulative or deceptive activities and also to questions regarding the accuracy of assertions by PixarBio in press releases, third party promotional materials, and the company's Form S-1 concerning: (1) the company's business combinations and current shareholders; (2) the identity and qualifications of key shareholders and employees; and (3) the company's current and prospective development efforts. As a result, PixarBio's shares are illiquid, rendering them worthless.
PixarBio Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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