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.

Alphatec (NASDAQ:ATEC)
Historical Stock Chart
Von Jun 2024 bis Jul 2024 Click Here for more Alphatec Charts.
Alphatec (NASDAQ:ATEC)
Historical Stock Chart
Von Jul 2023 bis Jul 2024 Click Here for more Alphatec Charts.