Zeldes & Haeggquist, a San Diego based shareholders rights law firm, has announced an investigation into possible securities violations by Neptune Technologies & Bioressources following the destruction by fire of the company’s production facilities and inventory and a subsequent stock drop.
An explosion and fire on Nov. 8 devastated the company’s krill oil production plant in Sherbrooke, Quebec, killing 3 and injuring 18. The company has announced a recovery plan that aims to restart production in Sherbrooke using an expansion facility that was almost complete at the time of the fire and forming relationships with third party manufacturers in the meantime to supply customer needs.
Trading in Neptune’s shares was suspending on the Toronto and NASDAQ exchanges following the fire and resumed Nov. 26. The shares on the NASDAQ plunged from $3.31 a share to $2.50 on the first day of trading, rebounding somewhat to $2.82. The 52-week high for Neptune shares is $4.90; on Dec. 6, 2011 the shares closed at $2.86.
Zeldes & Haeggquist’s investigation concerns whether certain of the company’s officers and directors caused Neptune to materially misstate the status of its operations and financial expectations between Dec, 12, 2011, when Neptune announced the expansion of the Sherbrooke plant, and Nov. 8, 2012, the day of the fire.
Neptune officials declined to comment except to say that the company is in compliance with all relevant securities laws.