NEW YORK, Aug. 4, 2016 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") announces that on August 4, 2016, it filed an amended securities class action complaint (the "Amended Complaint") on behalf of its clients St. Lucie County Fire District Firefighters' Pension Trust Fund ("St. Lucie") and Boynton Beach Firefighters' Pension Fund ("Boynton Beach") against Stericycle, Inc. ("Stericycle") (NASDAQ: SRCL and SRCLP), its directors, certain of its senior executives, and underwriters of its public securities offering (collectively, "Defendants").
On July 11, 2016, BLB&G filed the original complaint (the "Original Complaint") in the action captioned St. Lucie County Fire District Firefighters' Pension Trust Fund, et al. v. Stericycle, Inc., et al., No. 1:16-cv-7145 (N.D. Ill.) (the "Action") asserting claims under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the "Securities Act"), 15 U.S.C. §§ 77k, 77l and 77o, and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), 15 U.S.C. §§ 78j(b) and 78t(a), and U.S. Securities and Exchange Commission ("SEC") Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5, on behalf of investors who purchased or otherwise acquired Stericycle common stock and/or depository shares between February 7, 2013 and April 28, 2016, inclusive (the "Original Class Period").
The Original Complaint alleged that during the Original Class Period, Stericycle and certain Defendants violated provisions of the Securities Act and the Exchange Act by issuing false and misleading statements wherein they failed to disclose that Stericycle engaged in a systematic scheme whereby it routinely and systematically raised the rates it charged its smaller customers in violation of the contracts it had with those customers. By doing so, Stericycle artificially inflated its revenues and growth. Defendants did not disclose this practice and, as a result, Stericycle routinely misrepresented its performance and earnings.
On October 22, 2015, Stericycle disclosed disappointing growth rates and revenues during the third quarter of 2015 and lowered its guidance going forward. These disclosures caused Stericycle's stock to decline by over 19%. On April 28, 2016, Stericycle disclosed that its results for the first quarter of 2016 were below its guidance and analysts' expectations, and lowered its 2016 guidance going forward. These disclosures caused Stericycle's stock to decline by over 21.5%.
Following the filing of the Original Complaint, on July 28, 2016, Stericycle disclosed disappointing results for the second quarter of 2016 and lowered its 2016 guidance going forward. Moreover, Stericycle partially attributed these disappointing results to increased pricing pressure imposed by its smaller customers, which buttresses the allegations in the Original Complaint. These disclosures caused Stericycle's stock to decline by nearly 15%. As a result, on August 4, 2016, BLB&G filed the Amended Complaint to incorporate these latest disclosures and change the Original Class Period to February 7, 2013 thru July 28, 2016, inclusive (the "Operative Class Period").
The deadline to file a motion to serve as lead plaintiff in the Action has not changed as a result of the filing of the Amended Complaint. If you wish to serve as lead plaintiff for the Class, you must file a motion with the Court no later than September 12, 2016, which is the first business day on which the District Court for the Northern District of Illinois is open that is 60 days after publication of notice regarding the Original Complaint. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.
St. Lucie and Boynton Beach are represented by BLB&G, a firm of over 100 attorneys with offices in New York, California, Louisiana, and Illinois. If you wish to discuss this Action or have any questions concerning this notice or your rights or interests, please contact Avi Josefson of BLB&G at 212-554-1493, or via e-mail at avi@blbglaw.com.
Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination, and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained several of the largest and most significant securities recoveries in history, recovering billions of dollars on behalf of defrauded investors. More information about BLB&G can be found online at www.blbglaw.com.
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SOURCE Bernstein Litowitz Berger & Grossmann LLP
