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AngioDynamics – Securities Investigation

AngioDynamics – Securities Investigation

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Kehoe Law Firm’s securities attorneys are investigating potential claims on behalf of investors of AngioDynamics, Inc. (NASDAQ: ANGO) regarding possible securities law violations.

AngioDynamics – News of ‘Material Weakness’ Causes Share Price to Fall 7.5%

After the close of trading on July 17, 2017, AngioDynamics, Inc. announced that its auditor found a material weakness in its internal control over financial reporting as of May 31, 2016, because it did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.

Specifically, AngioDynamics did not have effective controls to review in sufficient detail the cash flow projections and valuation model assumptions used in the goodwill impairment test as of December 31, 2015.

Following this news, on July 18, 2017 AngioDynamic’s share price fell by 7.5% in intraday trading, causing significant harm to investors.

SeekingAlpha Reports: “AngioDynamics discloses material weakness in accounting of annual goodwill impairment”

The above-titled SeekingAlpha article, published on July 18, 2017, disclosed the following:

AngioDynamics . . . reports that its auditor has determined that there was a material weakness in its internal control over financial reporting as of May 31, 2016 because it did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.

Specifically, it did not have effective controls to review in sufficient detail the cash flow projections and significant valuation model assumptions used in the goodwill impairment test as of December 31, 2015.

The material weakness did not result in a misstatement of the 2016 financial statements or any interim periods therein. The company adds that the material weakness has been addressed.

AngioDynamics Files Form 8-K Regarding The Material Weakness

According to AngioDynamics’ Form 8-K, dated July 17, 2017:

AngioDynamics, Inc.’s (the “Company”) management has been informed by PricewaterhouseCoopers LLP (“PwC”), its former independent registered public accounting firm, following an inspection by the Public Company Accounting Oversight Board of PwC’s audit of the May 31, 2016 financial statements and internal controls over financial reporting, that the Company’s internal control over financial reporting as of May 31, 2016 was not effective because the material weakness described below existed as of that date.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.  PwC has now determined that there was a material weakness in the Company’s internal control over financial reporting as of May 31, 2016 because the Company did not design and maintain effective internal controls over the accounting for the annual goodwill impairment test.  Specifically, the Company did not design and maintain effective controls to review in sufficient detail the cash flow projections and significant valuation model assumptions used in the goodwill impairment test as of December 31, 2015. 

Management of the Company, after discussions with PwC and the Audit Committee, determined that Management’s Report on Internal Control over Financial Reporting included in the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2016 should no longer be relied upon due to the material weakness specifically related to the goodwill impairment test noted above.

Have You Purchased or Acquired Shares of AngioDynamics?

If you purchased or acquired shares of AngioDynamics and would like to speak privately with a securities attorney to learn more about the investigation and your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].

About Kehoe Law Firm, P.C.

The Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches.  Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.