Opko Health Inc. (NASDAQ: OPK)
Opko Health has been feeling the heat of the fire over the past couple of trading sessions as the result of a press release. The release was designed to inform investors that a class action litigation firm was investigating the company. Today, the company released their own PR, explaining that they believe that there is no basis or merit behind the claims. Today, we’ll talk about the response, what we’re seeing from the stock in today’s trading session, and what we can expect to see from OPK moving forward.
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OPK Responds To Purcell Julie & Lefkowitz, LLP
As mentioned above, Opko Health recently saw declines as the result of a press release. The release was published around the web and sent out by Purcell Julie & Lefkowitz, LLP. The firm is a class action litigation firm. In the release, the firm said that it was investigating the company for a potential breach of fiduciary duty claim involving the company’s board of directors.
Today, OPK released their own press release, explaining to investors that they believe there is no basis or merit to this investigation. In their response, they explained that they have reached out to the firm, to no avail. They also explain that they have not received complaints themselves. Here’s what OPK had to offer in today’s press release:
“Opko Health, Inc. is aware of a press release by Purcell Julie & Lefkowitz, LLP. a class action litigation firm, that it is investigating the Company for an alleged potential breach of fiduciary duty claim involving the Company’s Board of Directors. The Company has not received any notification or information from Purcell Julie & Lefkowitz regarding its investigation of any potential breach of fiduciary duty or other claim against OPKO’s Board of Directors. Nor have any such claims or allegations been made by any shareholders, other law firms or regulatory bodies. OPKO’s attempts to contact the law firm have gone unanswered. The Company does not believe there is any basis or merit behind the investigations and will vigorously defend itself should any formal allegations or claims be made.”
What We’re Seeing From The Stock Today
Unfortunately, today isn’t proving to be a great day for OPK. While I believe that the press release was overwhelmingly positive, investors still seem to fear that litigation may be around the corner. As a result, we’re seeing a continuation of the losses that we’ve recently seen on the stock. Currently (2:07), the stock is trading at $9.52 per share after a loss of $0.28 per share (2.86%) thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Opko Health. First and foremost, I agree with the press release that was sent out today. If the company has made attempts to contact the litigation firm that have gone unanswered and no formal allegations have been made, it’s safe to say that it’s likely that there’s nothing behind the claims. With that said, I believe that this will blow over, and it will likely happen quickly. Overall analysts are expecting this thing to climb to more than $15 per share, and for good reason. The company offers great products, has a great management team, and is in a great place for growth ahead. All in all, I’m expecting to see gains out of OPK.
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What Do You Think?
Where do you think OPK is headed moving forward and why? Join the discussion in at TalkTRENDZ!
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