Since TSB is the People's Forum, a friend in need is a friend indeed. Recently, TSB received an inquiry from an investigator whose firm goes after corporations that engage in fraudulent or illegal conduct. Firms like Cohen, Milstein, Sellers and Toll pick and choose cases carefully. An example of the type of litigation that they are involved in would be their suit against BP in connection with its safety and environmental record in connection with the Deepwater Horizon explosion. So how does this tie into the spine industry? CMST represents the lead plaintiff, a public employees retirement fund in a class action lawsuit against AlphaTec. This class of shareholders owned AlphaTec, (the Company) stock prior to the stock crashing last August. Obviously, AlphaTec had a difficult time integrating Scient'x. But inquiring minds always want to know how difficult can it really be considering that there was a limited product portfolio, a thin management team, and an independent distribution model that could be easily terminated. But that's not what this post is about.
John Sifton is attempting to speak with former AlpaTech, Scient'x, or Healthpoint employees who might have pertinent information regarding the Company's admittingly strange reversal of fortune in 2010. Considering that AlphaTec had presented such an optimistic forecast during the first half of the year, heralding the Scient'x merger. On March 29th, 2010 AlphaTec anticipated pro forma revenues in the range of $220-$225 million, and pro forma full year 2010 adjusted EBITA to be in the range of $32-35 million. In the 2010 press release, AlphaTec expected the acquisition to be positive to the Company's EPS, and accretive to the Company's 2011 EPS. So questions must be asked, what precipitated this sudden turn around in August 2010 which resulted in lowering their earlier "happy happy" forecast, and what could have potentially been the impetus for the delay in integrating Scient'x? Obviously something smells fishy. Was the company "fluffing" things up in anticipation of its April stock offering? Was the Scient'x acquisition and merger simply a ruse to mitigate expected losses at Scient'x? Is this truly a House of Cards? The inquiring minds at CMST want to know. It seems that those that invested in this dog of a stock are a bit perturbed about their losses.
So if you are interested, have the time and love for Mortimer and John Boy give Mr. Sifton a call at (202) 408-4617 or drop him an e-mail at email@example.com. You don't need to speak on the record, confidential documents or information are welcome. TSB wants to know what inquiring minds have to offer?