Enzymotec Can't Shake Shareholder Suit Over $70M IPO
By Shayna Posses (December 15, 2015, 6:04 PM EST) -- A New Jersey federal judge on Tuesday upheld most claims in a suit alleging Enzymotec Ltd. misrepresented its potential profitability ahead of an estimated $70 million initial public offering, saying shareholders provided sufficient evidence the Israeli biotechnology and health products company knew certain statements were false.
U.S. District Judge Jose L. Linares rejected most of the company's dismissal bid after determining that the shareholders offered satisfactory allegations of false and misleading statements regarding InFat, an infant formula ingredient, and provided compelling evidence of Enzymotec's knowledge and recklessness in making these statements.
However, the judge held that the shareholders failed to show...
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