SOURCE: Kessler Topaz Meltzer & Check, LLP

October 08, 2014 12:20 ET

Kessler Topaz Meltzer & Check, LLP Reminds Enzymotec Ltd. (ENZY) Shareholders of Class Action Lawsuit and Upcoming Lead Plaintiff Deadline

RADNOR, PA--(Marketwired - Oct 8, 2014) - The law firm of Kessler Topaz Meltzer & Check, LLP reminds shareholders that a class action lawsuit has been filed against Enzymotec Ltd. (NASDAQ: ENZY) ("Enzymotec" or "the Company") on behalf of purchasers of the Company's common stock issued pursuant and/or traceable to Enzymotec's Initial Public Offering (the "IPO") on or about September 27, 2013 through August 4, 2014, inclusive (the "Class Period").

Enzymotec shareholders may, no later than November 4, 2014, move the Court for appointment as a lead plaintiff of the Class.

Shareholders who wish to discuss this action and their options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706. For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/case/Enzymotec.

Enzymotec develops, manufactures and markets bio-active lipid ingredients used in the production of various nutritional products. Among other things, Enzymotec manufactures nutritional ingredient products which form the structural basis of cell membranes and are easily recognized, incorporated and used by the body. On or about September 27, 2013, the Company completed its IPO, selling over 5 million shares of stock to investors at $14.00 per share.

According to the complaint, on May 14, 2014, the Company disclosed that "Chinese regulations require infant formula manufacturers to make certain changes to their production chain," and that, as a result, the Company's revenues were lower. On this news, shares of the Company's stock declined $6.48 per share, or over 32%, to close at $13.75 per share on May 14, 2014, on unusually heavy trading volume.

Then on August 5, 2014, the Company further disclosed the increased impact of the Chinese regulations on its sales of infant formula and announced financial results that were significantly lower than the prior year in almost all respects. On this news, the Company's shares declined $5.87 per share, or nearly 40%, to close on August 5, 2014 at $9.11 per share, again on heavy trading volume.

The complaint alleges that, throughout the Class Period, the defendants made a series of false and misleading statements and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, the complaint alleges that the 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; (3) the Company's joint venture with AaarhusKarlshamn AB ("AAK") was crumbling and subjected the Company to liability and decreased revenues; and (4) as a result of the foregoing, the Defendants' positive statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Enzymotec shareholders may, no later than November 4, 2014, petition the Court for appointment as a lead plaintiff of the class. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299-7706 or (610) 667-7706, or via e-mail at info@ktmc.com. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For additional information about the lawsuit, or to request information about the action, please visit http://www.ktmc.com/case/Enzymotec.

Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.

Contact Information

  • CONTACT:
    Kessler Topaz Meltzer & Check, LLP
    Darren J. Check, Esq.
    D. Seamus Kaskela, Esq.
    Adrienne O. Bell, Esq.
    280 King of Prussia Road
    Radnor, PA 19087
    (888) 299-7706 or (610) 667-7706
    Email Contact