NEWTOWN, Pa., March 18, 2024 (GLOBE NEWSWIRE) — Edelson Lechtzin LLP is investigating potential violations of the federal securities laws involving Avid Bioservices, Inc. (NASDAQ: CDMO) resulting from allegations of providing potentially misleading business information to the investing public.
If you have information that could assist in the Avid Bioservices Investigation or if you are an Avid Bioservices investor who suffered a loss and would like to learn more, you can provide your information HERE.
You can also contact attorneys Eric Lechtzin or Marc Edelson of Edelson Lechtzin LLP by calling 844-563-5550 or via e-mail at elechtzin@edelson-law.com or medelson@edelson-law.com.
THE COMPANY: Avid Bioservices is a contract development and manufacturing organization based in Tustin, California. They provide process development and manufacturing services to the biotechnology and biopharmaceutical industries, including clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support. All such services must comply with current good manufacturing practices (“CGMP”).
THE ALLEGED WRONGDOING: On March 6, 2024, Avid Bioservices filed a current report on Form 8-K with the SEC, stating that it had received an acceleration notice from a holder of its 1.250% Exchangeable Senior Notes due in 2026 (the “2026 Notes”). The Acceleration Notice stipulates, among other things, that (i) the company did not remove the restrictive legend on the 2026 Notes by March 17, 2022, as required under the indenture governing the 2026 Notes, (ii) due to such failure, additional interest has accrued thereafter at a rate of 0.50% per annum, (iii) such additional interest was not paid by the company as of the date of the Acceleration Notice, which constituted an event of default under the 2026 Notes Indenture, and (iv) the 2026 Note holder is the beneficial owner of at least 25% in aggregate principal amount of the outstanding 2026 Notes and therefore has the right to accelerate all of the “2026 Notes.”
As a result of the interest payment default and according to the terms of the 2026 Notes Indenture, the 2026 Note holder declared 100% of the principal of, and accrued and unpaid interest on, the 2026 Notes to be due and payable immediately. The amount due, including principal and interest, as of February 29, 2024, was approximately $146 million and interest is now accruing at 2.75% per annum until paid in full.
THE REVELATION: Avid Bioservices has announced that their Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2024, may not be filed on time and the company may be required to restate certain of its financial statements included in the Relevant Reports. On this news, the price of Avid Bioservices stock fell over 28% in intraday trading on March 7, 2024.
ABOUT EDELSON LECHTZIN LLP: Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: medelson@edelson-law.com
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
