Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Akers Biosciences (NasdaqCM:AKER) in connection to alleged violations of securities laws by AKER’s officers and directors. Fitapelli Kurta is interested in speaking to investors who have complaints regarding investments made in Akers Biosciences from May 15, 2017 until June 5, 2018.
The class action complaint specifically alleges that during the period in question, AKER might have provided false and/or misleading material information, and/or failed to disclose adverse material information, namely: that the company improperly recognized revenue for the fiscal year ending December 31, 2017; that the company had understated deficiencies in the internal controls governing financial reporting; that the company had failed to disclose the extent of those deficiencies; and that consequently the company’s statements to the public about its business, operations and prospects during the relevant period were false and/or misleading and/or had no reasonable basis. More specifically, the company disclosed on May 21, 2018 that it would not be able to file its Form 10-Q for the quarter ending March 31, 2018, because it was engaged in a review of the characterization of some of its revenue recognition items. A little over a week later, on May 29, 2018, one of the company’s directors, Raymond F. Akers Jr., resigned from his position. A few days later, on June 1, 2018, the company filed a Form 8-K stating that Mr. Akers Jr. declined to fully cooperate with the aforementioned review of the company’s revenue recognition items. Then, on June 5, 2018, the company filed Form 8-K/A which contained a statement on Mr. Akers’ behalf that the language concerning him in the previous filing was incorrect; that he was acting as a whistleblower; and that his refusal to approve the Form 10-K for the year ending December 31, 2017 had resulted in the company’s internal review. Following the public revelation of this news, AKER declined approximately 30%, closing on June 6, 2018 at $0.46/share.
According to the company’s website, Akers Biosciences is a biotechnology company “with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information.” It was founded in 1989 and is currently known as Akers Bio. Its products include clinical diagnostics tests, safety diagnostics tests, and wellness products. The company is headquartered in West Deptford, New Jersey and trades on the Nasdaq exchange under the symbol AKER.