On February 13, 2015, the Court entered an order appointing the Enzymotec Investor Group to serve as Lead Plaintiffs with Saxena White serving as Co-Lead Counsel.
On May 18, 2015, Lead Plaintiffs filed an Amended Class Action Complaint (the “Amended Complaint”) alleging claims: (1) under the Securities Exchange Act of 1934, on behalf of purchasers of Enzymotec stock between September 27, 2013 and August 4, 2014, inclusive, and (2) under the Securities Act of 1933, on behalf of purchasers of Enzymotec stock in, or traceable to, Enzymotec’s initial public offering and/or secondary public offering. The Amended Complaint alleged, among other things, that Defendants made false and misleading statements and/or failed to disclose that: (a) Enzymotec’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government; (b) the Company's Chinese baby formula business was jeopardized and subject to increased volatility and decreased revenues; (c) the Company's joint venture with AarhusKarlshamn AB ("AAK") was crumbling and subjected the Company to liability and decreased revenues; and (4) as a result of the foregoing, the Defendants' positive statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On December 15, 2015, the Court issued an order granting in part and denying in part Defendants’ motion to dismiss. The parties engaged in discovery and, as a result of protracted settlement negotiations, agreed to a proposed settlement of $6.5 million.
The Court preliminarily approved the Settlement on September 5, 2017. A hearing on whether to grant final approval has been set for January 24, 2018.
All proofs of claim must be postmarked no later than December 26, 2017.