Akers Bioscience went public in 2014 using Aegis Financial as its investment banker and underwriter. In a subsequent offering in 2017, Akers investment banker and underwriter was Joseph Gunnar.
Akers Bioscience develops, manufactures, and supplies rapid screening and testing products designed to deliver quicker and more cost-effective healthcare information to healthcare providers and consumers. The Company has advanced the science of diagnostics while responding to major shifts in healthcare through the development of several proprietary platform technologies. The Company’s state-of-the-art rapid diagnostic assays can be performed virtually anywhere in minutes when time is of the essence. The Company has aligned with major healthcare companies and high volume medical product distributors to maximize product offerings, and to be a major worldwide competitor in diagnostics.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Akers was improperly recognizing revenue for the fiscal year ended December 31, 2017; (ii) Akers had downplayed weaknesses in its internal controls over financial reporting and failed to disclose the true extent of those weaknesses; and (iii) as a result, Defendants’ statements about Akers’ business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On May 21, 2018, Akers disclosed in a Form 8-K filed with the SEC that it was unable to file its Form 10-Q with the SEC for the quarter ended March 31, 2018. Akers also disclosed that its continuing review of the “characterization of certain revenue recognition items . . . now includes certain transactions in previous quarters.”
On this news, shares of Akers fell $0.058 per share or over 8% to close at $0.599 per share on May 22, 2018, damaging investors.
On May 29, 2018, before the market opened, Akers issued a press release stating that “Raymond F. Akers Jr., Ph.D. has resigned as a director of the Company with immediate effect.”
On this news, shares of Akers fell $0.198 or over 33% to close at $0.391 per share on May 29, 2018.
On June 1, 2018, the Company filed a Form 8-K with the SEC, stating that Raymond Akers “has not been fully cooperative” with the Company’s review of certain revenue recognition items for prior quarters. The Form 8-K also contained a letter as an exhibit from Raymond Akers which stated that Dr. Akers “resigned from the Board of Directors due to significant differences regarding the policies and practices of the Board of Directors, accounting and business practices of Management, and new Counsel.”
On June 5, 2018, the Company filed a Form 8-K/A with the SEC, which amended the Form 8-K filed with the SEC on June 1, 2018. The Form 8-K/A contained as an exhibit a letter on behalf of Raymond Akers, stating that the “8K regarding [Raymond Akers] is false, totally misleading[.]”
On this news, shares of Akers fell $0.025 or over 5% to close at $0.46 per share on June 6, 2018.
If You’ve Invested in Akers Bioscience
If you suffered significant financial losses in Akers Bioscience, you may have a claim for your investment losses. Silver Law Group has significant experience pursuing claims against broker-dealers including Aegis Financial through FINRA or securities arbitration as well as class action lawsuits against issuers and other potential third parties.
Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida representing investors worldwide with their claims for losses due to securities and investment fraud. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.