WILMINGTON, Del. -- (Business Wire)
& Long, P.A. has commenced a class action asserting violations
of the Federal securities laws by Pacific Biosciences of California,
Inc. (“PACB” or the “Company”) (NASDAQ GS: PACB)
on behalf of PACB shareholders. On April 6, 2012, the Court appointed
Rigrodsky & Long, P.A. lead counsel in connection with the litigation.
If you are a PACB shareholder who purchased your stock pursuant or
traceable to the Company’s Initial Public Offering on October 27, 2010
(the “IPO”) or from J.P. Morgan Securities LLC or from Deutsche Bank
Securities, Inc., and would like to learn more about litigation, or if
you wish to discuss these matters or have any questions concerning this
announcement or your rights or interests with respect to these matters,
please contact Peter Allocco at Rigrodsky & Long, P.A., 825 East Gate
Boulevard, Suite 300, Garden City, New York 11530 toll free at (888)
969-4242, by e-mail to firstname.lastname@example.org,
or at: http://www.rigrodskylong.com/news/pacific-biosciences-of-california-inc-pacb-ipo.
PACB is a development stage company that develops, manufactures, and
markets an integrated platform for genetic analysis. The Company engages
in commercializing a platform, single molecule, real-time technology
(SMRT) for the detection of biological events.
Among other things, the litigation alleges that the Company failed to
disclose in connection with its IPO that, contrary to the PACB’s claim
that its RS DNA sequencing system had a 99.99% accuracy rate, the RS’s
raw-read accuracy rate was only 80%-84% such that would-be customers
would have to sacrifice long read length to obtain increased raw-read
accuracy, that countless insidious bugs in the RS system caused it to be
highly unreliable and crash often, and that significant negative
feedback had been received from limited production users of the system.
On August 5, 2011, J.P. Morgan issued a report cutting PACB’s rating
from Overweight to Neutral, stating that due to a slower ramp-up in
orders now being expected it was “lowering [its] 2012 projection from
systems recognized from 170 to 90” and is now “not forecast[ing]
operating profitability until after 2015.” In reaction to this news,
PACB stock plunged 34% to close at $6.50 per share on August 5, 2011.
The very next month, on September 21, 2011, PACB was forced to disclose
that its cash burn was threatening its operations so severely, that as a
result it was laying off 130 employees and it would incur $5 million in
separation expenses related to the lay off of these employees. In
reaction to this news, PACB’s again plummeted another 25% to close at
$4.25 per share on September 21, 2011.
& Long, P.A., with offices in Wilmington, Delaware and Garden
City, New York, regularly litigates securities
class, derivative and direct actions, shareholder rights litigation and
corporate governance litigation, including claims for breach of
fiduciary duty and proxy violations in the Delaware Court of Chancery
and in state and federal courts throughout the United States.
Attorney advertising. Prior results do not guarantee a similar outcome.
Rigrodsky & Long, P.A.
Source: Rigrodsky & Long, P.A.
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