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Globe Newswire 19-Sep-2023 11:23 AM
RADNOR, Pa., Sept. 19, 2023 (GLOBE NEWSWIRE) -- The law firm of Kessler Topaz Meltzer & Check, LLP (www.ktmc.com) informs investors that a securities class action lawsuit has been filed in the United States District Court for the Southern District of New York against Syneos Health, Inc. ("Syneos") (NASDAQ:SYNH). The action charges Syneos with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company's business, operations, and prospects. As a result of Syneos's materially misleading statements and omissions to the public, Syneos's investors have suffered significant losses.
CLICK HERE TO SUBMIT YOUR SYNEOS LOSSES. YOU CAN ALSO CLICK ON THE FOLLOWING LINK OR COPY AND PASTE IN YOUR BROWSER: https://www.ktmc.com/new-cases/syneos-health-inc?utm_source=PR&utm_medium=link&utm_campaign=synh&mktm=r
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LEAD PLAINTIFF DEADLINE: SEPTEMBER 25, 2023
CLASS PERIOD: SEPTEMBER 9, 2020 THROUGH NOVEMBER 3, 2022
Kessler Topaz is one of the world's foremost advocates in protecting the public against corporate fraud and other wrongdoing. Our securities fraud litigators are regularly recognized as leaders in the field individually and our firm is both feared and respected among the defense bar and the insurance bar. We are proud to have recovered billions of dollars for our clients and the classes of shareholders we represent.
SYNEOS'S ALLEGED MISCONDUCT
Syneos is a multinational clinical research organization that helps biopharmaceutical companies test and develop their products. The Class Period begins on September 9, 2020 when certain defendants presented at an industry conference and stated that Syneos was beginning to enjoy "pent-up demand" as on-site clinical activations had returned to pre-COVID-19 levels. Indeed, defendants claimed that negative impacts from the COVID-19 pandemic had bottomed out by the second quarter of 2020 and that Syneos had quickly entered a recovery period that was proving a boon for business. During the Class Period, defendants claimed that Syneos's business was booming as the company lapped weak pandemic-era results. Unbeknownst to investors, however, these and similar statements made by defendants during the Class Period were materially false and misleading when made. Syneos's business development capabilities had been critically impaired by recent workforce reductions and leadership and operational changes, as well as labor force turmoil caused by the COVID-19 pandemic. In addition, the company had struggled to integrate numerous companies it had acquired and its reimbursable revenue stream had been fundamentally diminished by the COVID-19 pandemic as its customers persisted in seeking remote work and limiting the number of on-site clinical trials. Consequently, Syneos's backlog had been artificially inflated by hundreds of millions of dollars in reimbursable experiences that would never be received by the company, which created the false impression that Syneos was enjoying robust client demand when in fact its business was floundering.
The truth began to be revealed on February 17, 2022, when Syneos disclosed that its reimbursable expenses would likely never recover to pre-pandemic levels and that $3.8 billion of the company's Clinical Solutions backlog was at risk of never being collected. Following this news, Syneos's stock price fell $4.01, or 4.8%, to close at $79.36 on February 17, 2022.
Then, on August 2, 2022, Syneos revealed that net new business awards within the Clinical Solutions segment had declined by approximately 34%. Additionally, Syneos reduced its expected revenue for 2022 by $185 million. Following this news, Syneos's stock price fell $13.94, or 17.6%, to close at $65.20 on August 2, 2022.
On September 13, 2022, Syneos disclosed that it expected to announce a book-to-bill ratio in its Clinical Solutions segment in the range of 1.05x to 1.15x, excluding reimbursable expenses. Following this news, Syneos's stock price fell $8.65, or 13.6%, to close at $54.72 per share on September 13, 2022.
Finally, on November 4, 2022, Syneos revealed that its book-to-bill ratios had fallen lower than expected. Specifically, Syneos stated that its Clinical Solutions segment had a reimbursable expenses decline of 87% and a book-to-bill ratio of just 0.18x for the quarter, which was just one-tenth of the new business growth expected. Following this news, Syneos's stock price fell $22.11, or 46.2 %, to close at $25.70 on November 4, 2022.
WHAT CAN I DO?
Syneos investors may, no later than September 25, 2023, move the Court to serve as lead plaintiff for the class, through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. Kessler Topaz Meltzer & Check, LLP encourages Syneos investors who have suffered significant losses to contact the firm directly to acquire more information. The class action complaint against Syneos, captioned United Association of Plumbers and Pipefitters, Journeymen, Local #38 Defined Benefit Pension Plan v. Syneos Health, Inc., et al. Case No. 23-cv-06548, is filed in the United States District Court for the Southern District of New York before the Honorable Edgardo Ramos.
CLICK HERE TO SIGN UP FOR THE CASE
WHO CAN BE A LEAD PLAINTIFF?
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP
Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit www.ktmc.com.