Australia

Enzymotec opens up Down Under as lawyers drum up support for lawsuit

By RJ Whitehead

- Last updated on GMT

Enzymotec opens up Down Under as lawyers drum up support for lawsuit
Global lipid supplier Enzymotec has established a Southern Hemisphere subsidiary, Enzymotec Australia with Claudette Cross at the helm of the country’s operations in Australia and New Zealand. 

Cross will be responsible for the growth and development of Enzymotec's operations and cultivating its partners in the two countries.

South Pacific expansion

Dr Ariel Katz, Enzymotec president and chief executive announced the move: “We areexcited to have Claudette join our team to support our future global growth and manage our operations in Australia​. 

We look forward to leveraging her extensive sales experience within the nutrition market to further expand our business in the South Pacific region​.”

This is rare recent good news for the company, which has faced lower than expected earnings calls while litigation proceedings are overshadowing its operations. 

In the United States, lawyers are drumming up support for a class action lawsuit on behalf of purchasers of Nasdaq-listed common stock in the company between September 27, 2013, and August 4 this year.

Class action

The complaint alleges that Enzymotec officers and directors either misrepresented or failed to disclose that the company had been facing significant compliance issues in the Chinese market, increased competition and operational problems.

Claimants also argue Enzymotec had failed to disclose that its Chinese baby formula business was “in jeopardy and subject to increased volatility and decreased revenues as it was subject to material and readily identifiable compliance regulations from the Chinese government​,” said Cohen Milstein Sellers & Toll, an American firm that is investigating the company, in a statement. 

The suit also suggests Enzymotec’s did not notify shareholders that its joint-venture with AAK was in trouble, exposing it to liability and decreased revenues

As a result of the foregoing, the defendants' positive statements about [Enzymotec’s] business, operations, and prospects were materially false and misleading or lacked a reasonable basis​,” Cohen Milstein Sellers & Toll alleged.

Cohen Milstein, which is behind the class action, said it is encouraging any investors who purchased Enzymotec common stock within the class period, as well as former employees with information concerning this matter, to contact the firm.

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