The Complaint brought forth claims for violations of the Securities Exchange Act of 1934 against Enzymotec, Ltd. (“Enzymotec,” or the “Company”), and certain of its senior executives. The Complaint alleged that Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects on behalf of all persons or entities that purchased or otherwise acquired Enzymotec common stock during the Class Period.
Enzymotec is a global supplier of lipid-based specialty nutritional and medical food products and solutions, with its two premier products being an infant formula ingredient called InFat and krill oil products for the Omega-3 fatty acid market.
Specifically the Complaint alleged that Defendants made false and misleading statements and/or failed to disclose that: (1) Enzymotec’s Chinese business was subject to material and readily identifiable compliance regulations from the Chinese government; (2) the Company’s Chinese baby formula business was jeopardized and subject to increased volatility and decreased revenues; and (3) the Company’s joint venture with another company was crumbling and subjected the Company to liability and decreased revenues.
On February 13, 2015, the Court entered an order appointing the Enzymotec Investor Group to serve as Co-Lead Plaintiff, and Saxena White P.A. as Co-Lead Counsel. On May 18, 2015, Lead Plaintiffs filed an Amended Complaint.
On December 15, 2015, the Court issued an order denying in part Defendants’ motion to dismiss. The parties engaged in discovery and, as a result of protracted settlement negotiations, agreed to a proposed settlement of $6,500,000.
On September 5, 2017, the Court preliminarily approved the settlement, and then on January 24, 2018, entered final judgment finding the settlement to be fair, adequate and reasonable in all respects