NEW YORK, Feb. 09, 2017 (GLOBE NEWSWIRE) -- Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action was filed against Psychemedics Corporation (NASDAQ: PMD ) (“Psychemedics” or the “Company”) in the United States District Court for the District of Massachusetts. The complaint is brought on behalf of all purchasers of Psychemedics securities between February 28, 2014 and January 30, 2017, inclusive (“Class Period”).
Investors who have incurred losses in shares of Psychemedics Corporation are urged to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. You may obtain additional information concerning the action on our website, www.whafh.com .
If you have purchased shares of Psychemedics Corporation within the class period and would like to assist with the litigation process, you may, no later than April 3, 2017 , request that the Court appoint you lead plaintiff of the proposed class.
Psychemedics provides testing services for the detection of drugs of abuse through the analysis of hair samples in the United States and internationally.
According to the filed complaint, Psychemedics submitted a series of filings with the United States Securities and Exchange Commission (SEC) in which it differentiated itself from its competitors, emphasizing the superior results the company obtains through its use of its unique patented extraction method in combination with its immunoassay screen cleared by the United States Food and Drug Administration (FDA).
On April 26, 2016, Psychemedics issued a news release announcing that the company was excited about a significant business opportunity in Brazil and that it was "aggressively competing for a share of this potential business." However, Psychemedics officials failed to disclose that the company engaged in anticompetitive conduct through its affiliate Psychemedics Brasil Exames Toxicologicos Ltda. ("Psychemedics Brasil") to maintain a monopoly over the Brazilian market in violation of the law and that, in turn, Psychemedics lacked effective internal controls over financial reporting.
On January 31, 2017, Bloomberg reported that a Brazilian judge ordered Psychemedics Brasil to compensate Omega Laboratories, Inc. USA for losses caused by anticompetitive practices. Bloomberg also revealed that the practices were allegedly used for the purpose of "preventing other companies from accessing (the) market," and that Psychemedics Brasil may be further investigated by Brazil's Administrative Council for Economic Defense for engaging in "cartel practices."
On this news, Psychemedics' stock fell $6.75 per share, or 26.35%, to close at $18.87 per share on January 31, 2017.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735, via e-mail at classmember@whafh.com , or visit our website at www.whafh.com .
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Contact: Wolf Haldenstein Adler Freeman & Herz LLP Patrick Donovan, Esq. Gregory Stone, Director of Case and Financial Analysis Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com Tel: (800) 575-0735 or (212) 545-4774
