The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) deficiencies existed in the Company’s internal controls over financial reporting; and (2) as a result, Defendants’ statements about Misonix’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on September 14, 2016, during aftermarket hours, Misonix filed a Notification of Late Filing on Form 12b-25 with the SEC revealing that the Company is not able to timely file its Annual Report on Form 10-K for the year ending June 30, 2016 with the SEC due to “deficiencies [that] existed in the Company’s internal control over financial reporting at June 30, 2016.”
On this news, shares of Misonix dropped over 18%, closing at $5.00 per share on September 15, 2016, on heavy trading volume.
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