Late last week, shareholders of ERBA Diagnostics Inc (NYSEMKT:ERB) were taken by surprise when Goldberg Law PC announced that they were pursuing an investigation of claims against the company for “misrepresentations”. They had claimed that the company had mislead investors with information, and violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934.
The stock reacted by falling quickly, but today it is rebounding after the company issued a release stating that they intend to restate their financial statements for 2013 and 2014 respectively, as well as the intern periods which ended March 31, 2015 nd June 30, 2015. They will then proceed to fie amended reports for these time periods with the SEC.
We will certainly follow this story as it unfolds. The stock is up 32.79% or $0.4 after the news, hitting $1.62 per share. About 59,516 shares traded hands or 302.03% up from the average. ERB has declined 56.89% since April 28, 2015 and is downtrending. It has underperformed by 56.00% the S&P500.
The institutional sentiment decreased to 0.86 in Q2 2015. Its down 2.14, from 3 in 2015Q1. The ratio worsened, as 3 funds sold all ERBA Diagnostics Inc shares owned while 4 reduced positions. 4 funds bought stakes while 2 increased positions. They now own 976,263 shares or 13.94% more from 856,795 shares in 2015Q1.
Blackrock Institutional Trust Company N.A. holds 0% of its portfolio in ERBA Diagnostics Inc for 271,277 shares. Blackrock Investment Management Llc owns 1,321 shares or 0% of their US portfolio. Moreover, Bridgeway Capital Management Inc has 0% invested in the company for 24,996 shares. The California-based California Public Employees Retirement System has invested 0% in the stock. Creative Planning, a Kansas-based fund reported 135,000 shares.
ERBA Diagnostics, Inc., formerly IVAX Diagnostics, Inc., through its subsidiaries, is engaged in developing, manufacturing and marketing diagnostic test kits, reagents and instruments for use in hospitals, reference laboratories, clinical laboratories, research laboratories, doctors’ offices and other commercial companies. The company has a market cap of $72.59 million. The Company’s products and instrumentation are sold primarily to clients in the United States and Italy. It currently has negative earnings. These tests, which are designed to aid in the identification of the causes of illness and disease, assist physicians in selecting appropriate patient treatment.