This is a securities class action lawsuit against Inyx and certain of its officers and directors.
Inyx is a pharmaceutical company that develops and manufactures prescription and over-the-counter pharmaceutical products. Inyx has operating subsidiaries in the United States and the United Kingdom.
The class action complaint alleges that, during the Class Period, Inyx made numerous statements about Inyx's financial performance in both its public statements and in the filings that it made with the Securities and Exchange Commission. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose:
(i) that Inyx was materially overstating its assets and revenues by creating false sales invoices, as these invoices were created before the items were billable and had not actually been issued to customers;
(ii) that Inyx was not following its publicly stated accounting policies; and
(iii) as a result of the foregoing, Inyx's financial statements were not prepared in accordance with Generally Accepted Accounting Principles and were therefore materially false and misleading.
On July 2, 2007, after the market opened for trading, news services carried a report that Inyx had filed for Chapter 11 protection in the U.S. Bankruptcy Court in Delaware. In response to this announcement, the price of Inyx common stock plummeted, falling from $2.44 per share on June 29, 2007 to a low as $0.30 per share in intra-day trading on July 2, 2007, on extremely heavy trading volume of more than 7.7 million shares.
Name (Stock Symbol)
Inyx, Inc. (IYXI.PK)
Inyx, Inc. makes third party over-the-counter and prescription allergy, dermatological, respiratory, and topical pharmaceuticals.
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