A Boston-based law firm representing investors nationwide, is investigating possible securities law violations involving Orthofix International N.V. (“Orthofix” or the “Company”) (NASDAQ: OFIX) following the announcement that the Company announced that it is postponing the release of its financial results for the second quarter 2013 and may need to restate earlier quarters of financial reports. The Company stated that the Audit Committee concluded that additional time is needed to review matters relating to revenue recognition for prior periods. These revelations will affect investors who purchased Orthofix securities and bonds between July 26, 2012, and July 29, 2013, and may affect earlier investors as the Company releases additional information about its need to restate its previously filed financial results. The Company has been unable to provide guidance into how long its investigation will require as it determines how widespread the effect of the unreliable statements will be.
News of the accounting irregularities shocked the market, and the Company’s stock price fell by more than 16% in a day – dropping from $27.40 per share on July 29, 2013, to close at $22.94 per share on July 30, 2013, hitting the Company’s lowest share price in over four years as its stock price plummeted. The volume of Orthofix shares traded upon the news of the financial irregularities was the highest in at least 5 years.