Roy Jacobs & Associates Investigating Alphatec Holdings, Inc. for Possible Securities Law Violations ("ATEC")
09 August 2010 - 4:32PM
Business Wire
Roy Jacobs & Associates announces that it is investigating
possible claims for the violation of the federal securities laws on
behalf of purchasers of the common stock of Alphatec Holdings, Inc.
(“ATEC” or the “Company”) (NASDAQ: ATEC) during the period between
December 18, 2009 and August 5, 2010. ATEC is a medical device
company that designs, develops, manufactures and markets products
for the surgical treatment of spine disorders, with a focus on
treating conditions affecting the aging spine. On August 5 2010,
after the close of trading, the Company announced disappointing
revenues and earnings for the Second Quarter 2010, and markedly
lower revised revenue and earnings guidance for fiscal 2010. As a
result of the Company’s poor financial performance for the reasons
discussed below, the Company’s shares declined on August 6, 2010 by
46%, to close at $2.39, wiping out tens of millions of dollars in
shareholder value.
For further information, please contact Roy L. Jacobs, Esq.
toll-free at 1-888-884-4490 or by e-mail at
rjacobs@jacobsclasslaw.com.
On December 17, 2009 the Company announced that it was going to
acquire Scient’x, S.A. (“Scient’x”), a company owned by
HealthpointCapital Partners and affiliates (“HealthpointCapital”),
which also held 38% of the Company’s shares, in an all stock
transaction. Five of the nine ATEC directors are affiliated with
HealthpointCapital. The Company praised the acquisition by touting
the anticipated increase in scale, the global presence in all major
markets, and the cost synergies to be realized. Also on December
17, 2009, the Company disseminated very positive and aggressive
full year 2010 financial guidance, stating that the Company
anticipated annualized pro forma revenues of $220.0 million to
$225.0 million, and $32.0 million to $35.0 million in annualized
adjusted gross earnings. ATEC shares rose over 8% on this news. The
2010 guidance was reiterated on February 23, 2010, April 12, 2010
and May 10, 2010. The guidance was a major factor in causing ATEC’s
share price to trade at high prices, so that ATEC could sell shares
in a follow-on offering and so that HealthpointCapital could sell
off a substantial part of its shares in that same offering, as
discussed below.
On March 26, 2010 the Company closed the Scient’x acquisition.
On April 12, ATEC announced a follow-on public offering wherein the
Company would sell 8 million shares and HealthpointCapital would
also sell an additional 8 million shares. The offering was priced
at $5.00. The offering closed on April 21, 2010. The offering
allowed HealthpointCapital to sell off a significant number of its
ATEC shares.
Then on August 6, 2010, ATEC shares crashed upon the revelation
of facts suggesting that the repeated aggressive projections lacked
a reasonable basis, in that they appear to have been based on
unrealistic calculations as to the speed of integration and the
benefits to be achieved by the Scient’x acquisition; as to the
ability to offset negative pricing trends in the industry; and as
to the ability to replace revenue lost when it divested its Asian
distributor at the time of the Scient’x acquisition.
If you (i) purchased ATEC shares during the period from December
18, 2009 through August 5, 2010, and have a loss, whether or not
you still hold your shares; or (ii) if your bought in the April
2010 offering; or (iii) held ATEC shares prior to December 18 ,
2009, and still hold your shares and, you are interested in
discussing your rights free of charge, please contact Roy L.
Jacobs. Mr. Jacobs will be glad to personally speak with you.
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