| Company: | Alphatec Holdings, Inc |
| Ticker Symbol: | ATEC |
| Class Period: | Dec-18-09 to Aug-5-10 |
| Date Filed: | Aug-11-10 |
| Lead Plaintiff Deadline: | Oct-10-10 |
| Court: | Southern District of California |
| Allegations: | |
ATEC designs, develops, manufactures and markets products for the surgical treatment of spinal disorders. The Complaint alleges that on December 17, 2009, the Company announced that it was going to acquire Scient'x, S.A. ("Scient'x") from HealthPointCapital Partners, L.P. and HealthPointCapital Partners II, L.P. (collectively, "HealthPointCapital"), which then owned 38% of ATEC's shares, in an all stock transaction. With respect to the proposed transaction, the Company praised the Scient'x acquisition and announced that it expected 2010 pro forma full-year revenue of $220 million to $225 million, and adjusted EBITDA of $32 million to $35 million (the "Aggressive Projection"). On this news, ATEC shares rose 8%. ATEC reiterated the Aggressive Projection on February 23, 2010, April 12, 2010 and May 10, 2010.
As further alleged in the Complaint, these statements were made to increase interest in ATEC's stock, so that ATEC and HealthPointCapital could sell off a significant number of their ATEC shares at the highest price possible in an upcoming offering. In fact, the statements were unrealistic because: (a) pricing pressures were steadily increasing; (b) ATEC planned to dispose of its Asian distributor without any realistic plan to replace the revenues the distributor produced; (c) Scient'x had exhibited almost no revenue growth in the first nine months of 2009, and its ability to market and sell in 2010 would be disrupted by any acquisition; and (d) integrating the two companies would be a long process, which would negatively affect 2010 revenues. On March 26, 2010, ATEC closed the Scient'x acquisition. On Aril 12, 2010, the Company announced a follow-on public offering, wherein ATEC and HealthPointCapital would each sell 8 million shares. The offering closed on April 21, 2010 and, with over-allotments, ATEC and HealthPointCapital each sold 9.2 million shares, for $46 million in gross proceeds.
On August 5, 2010, ATEC announced disappointing quarterly results and an extreme revision of the Aggressive Projection. As a result, ATEC shares dropped 46%, to close at $2.39 per share, resulting in a loss of shareholder value of over $200 million in one trading day.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
