BioAmber Inc. and Chief Officers Hit with Securities Lawsuit

New to ClassAction.org? Read our Newswire Disclaimer

BioAmber Inc. and three former or current senior officers are the defendants in a proposed class action lawsuit claiming they violated certain provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. According to the suit, on January 23, 2017, BioAmber sold about 2.1 million shares of its stock at $4.75 per share, along with “warrants to purchase a minimum of 1,052,632 shares of common stock.” On the same day, the company supposedly submitted a form to the Securities and Exchange Commission (SEC) stating its fourth quarter and year-end prospects. According to the complaint, BioAmber announced on March 16, 2017 that their financial year-end results were much less than expected, allegedly causing stock prices to drop significantly. The plaintiff argues that the senior officers of the company deceived the public by publishing misleading statements about the company’s expected earnings and withholding key facts that would have dissuaded potential investors to buy company stock.