INC Research Holdings, Inc. (Nasdaq: INCR)
The complaint charges INC Research Holdings, Inc. (Nasdaq: INCR) and certain of its officers with violations of the Securities Exchange Act of 1934. INC Research is a leading Contract Research Organization offering end-to-end solutions for professional clinical trials around the world, including Phase I to Phase IV clinical development services to pharmaceutical, biotechnology and medical device companies.
On August 1, 2017, the Company announced that it had completed a merger with inVentiv Health, Inc. (the “Merger”). The Company represented to investors that the Merger was the beginning of an industry changing company, with high expectations for revenue growth and profitability.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose material adverse facts about the Company’s business, operations and prospects. Specifically, defendants failed to disclose that inVentiv was underperforming and the Merger was not providing the benefits that defendants had stated it would, which would result in the Company’s 2017 financial performance being negatively impacted. As a result of defendants’ false statements and/or omissions, INC Research securities traded at artificially inflated prices during the Class Period, with its stock reaching a high of more than $60 per share.
Then on November 9, 2017, the first quarter after the Merger, INC Research reported a net loss of $88.9 million, as well as impairment charges to the Company’s intangible assets. Analysts noted that the Company’s fourth quarter guidance was worrisome given the challenges that inVentiv’s commercial business faced. On this news, the price of the Company’s stock fell $16.35 per share, or more than 28%, to close at $41.15 per share on November 9, 2017, on unusually heavy trading volume. The price of the Company’s stock continued to fall over the next three trading sessions, closing at $34.35 per share on November 14, 2017, a total decline of $23.15 per share, or more than 40%.
If you are a current shareholder and purchased stock between May 10, 2017 through November 9, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
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