| COMPANY |
Aceto Corporation |
| COURT |
United States District Court for the Southern District of New York |
| CASE NUMBER |
18-cv-02425 |
| JUDGE |
The Hon. Joseph F. Bianco |
| CLASS PERIOD |
August 25, 2017 - February 19, 2019 |
| SECURITY TYPE |
All Securities |
Case Background:
On April 24, 2018, the initial complaint in this securities class action was filed against Aceto Corporation (“Aceto” or the “Company”), and certain of Aceto’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action lawsuit brought on behalf of a class, consisting of all persons who purchased or otherwise acquired Aceto securities between August 25, 2017 and February 19, 2019, both dates inclusive (the “Class Period”).
The complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that (1) the Company failed to implement and enforce proper internal control to identify the misapplication of cash; (2) the Company would incur large non-cash intangible asset impairment charges; (3) the Company lacked effective internal control over financial reporting; and (4) the Company's financial results for the fiscal year 2017 could not be relied upon; (5) the Company's fiscal 2018 financial guidance was overstated.
Current Status of Case:
On February 27, 2019, Defendants filed a Suggestion of Bankruptcy. On April 1, 2019, the remaining individual Defendants filed a Motion to Dismiss the consolidated amended complaint (the “Amended Complaint”). On August 6, 2019, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Amended Complaint. On August 27, 2019, Plaintiffs filed a consolidated second amended complaint (the “Second Amended Complaint). Defendant, Aceto, was dropped from the Second Amended Complaint due to bankruptcy proceedings. On August 3, 2020, the Court issued an Order dismissing the remaining individual Defendants and dismissed the case with prejudice. On April 15, 2021, Plaintiffs appealed the Court’s dismissal to the United States Court of Appeals for the Second Circuit, and on February 1, 2022, the Court of Appeals for the Second Circuit affirmed the District Court’s decision. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.