Neptune faces law suit, watches shares slide
Marine-derived omega-3 company Neptune Technologies & Bioressources has announced that it and ce…Marine-derived omega-3 company Neptune Technologies & Bioressources has announced that it and certain of its officers have been named as defendants in a purported class action lawsuit filed by Robbins Geller Rudman & Dowd LLP on December 19, 2012 in the United States District Court for the Southern District of New York.
The complaint charges Neptune and certain of its officers with alleged violations of the Securities Exchange Act of 1934. The complaint has been filed on behalf of all persons or entities who purchased the common stock of Neptune during a specified period.
Neptune said that it believes that the claim is completely without merit and that it has substantial and meritorious legal and factual defences, which Neptune intends to pursue vigorously.
Amongst those defences, Neptune will reiterate that it has duly demonstrated that acetone levels stored inside and/or outside its Sherbrooke plant or used in the production of its krill oil products did not at any time exceed the levels permitted by the Québec Ministry of Environment.
Neptune had obtained the required construction permits for its plant expansion and was in the process of obtaining the required environmental permit for the expansion.
As previously disclosed, the notice alleging environmental non-compliance received by Neptune from the Québec Ministry of Environment on November 16, 2012 related to specific equipment acquisitions by Neptune and its plant expansion, but had nothing to do with the level or the compliance of acetone levels.
Neptune continues to work on the implementation of its action plan to resume operations and supply customers announced on November 26, 2012 following the fire at its plant in which two were killed.
Neptune’s shares have been falling sharply following an online article that said that Neptune would not restart meaningful production until 2014 – a claim that Neptune has vigorously denied, saying that it expected production to resume in 6-9 months.
