Robbins LLP: Platform Specialty Products Corporation (PAH) Misled Shareholders According to a Recently Filed Class Action
Robbins LLP announces that a class action complaint was filed against Platform Specialty Products Corporation (NYSE: PAH) in the U.S. District Court for the Southern District of Florida. The plaintiff brings the complaint on behalf of all purchasers of Platform securities between February 17, 2015 and March 14, 2016, for alleged violations of the Securities Exchange Act of 1934 by Platform’s officers and directors. Platform produces and sells specialty chemical products in the Americas, the Asia-Pacific, and Europe.
Platform Accused of Violating the U.S. Foreign Corrupt Practices Act
According to the complaint, Platform submitted multiple filings with the U.S. Securities and Exchange Commission (“SEC”) and issued several press releases discussing the company’s acquisition of Arysta Lifescience Limited (“Arysta”), a crop protection and life science company that operates worldwide. Platform stated that the acquisition allowed it to expand its leadership capabilities, outperform the sector, and realize over $65 million in synergies from the combination of these businesses in the next three years. Platform also emphasized its Business Conduct and Ethics Policy, which sets an expectation of compliance with anti-corruption laws at all levels within the company. The complaint alleges that these statements were misleading because Platform failed to disclose that Arysta had made improper third-party payments in West Africa that were unlawful under the U.S. Foreign Corrupt Practices Act (“FCPA”), which prohibits companies and their intermediaries from making illegal payments to non-U.S. government officials to obtain or retain business or secure any other improper advantage.
On March 11, 2016, Platform disclosed in its 2015 annual report that the company had “discovered certain payments made to third-party agents in connection with Arysta’s government tender business in West Africa which may be illegal or otherwise inappropriate” and had “engaged outside counsel and an outside accounting firm to conduct an internal investigation to review the legality of these and other payments … including Arysta’s compliance with the FCPA.” On March 14, 2016, the Wall Street Journal published a story addressing Platform’s disclosures. Following these disclosures, Platform stock fell by $0.90 per share, or over 10%, to close at $7.95 per share on March 15, 2016.
Platform Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact our attorneys at (800) 350-6003, or you can complete the form below and we will contact you directly.
