Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Salix Pharmaceuticals, Ltd. (“Salix” or the “Company”) (NASDAQ:SLXP) between November 7, 2013 and November 6, 2014, inclusive (the “Class Period”). Investors who have losses of $250,000 or more are encouraged to contact the firm for more information.

Salix acquires, develops and commercializes prescription drugs and medical devices in the United States to treat various gastrointestinal diseases. The lawsuit alleges that defendants made false and/or misleading statements and failed to disclose material adverse facts about the Company’s operations and financial performance and prospects. Specifically, defendants misrepresented and/or failed to disclose that: (1) the Company misclassified wholesale inventory of its drugs; (2) the Company was unable to accurately forecast quarterly revenues without distribution; (3) the Company’s internal and financial controls were inadequate; and (4), as a result of the foregoing, defendants’ statements were materially false and misleading at all relevant times.

On November 6, 2014, Salix disclosed that the Company’s Audit Committee would be reviewing the Company’s characterization of wholesale inventory, that the Company intends to reduce inventory to three-months’ level by the end of 2016, and that a lack of distribution services arrangements with its wholesalers made it difficult to forecast quarterly revenue. In addition, Salix announced that the Company’s chief financial officer had resigned, and the Company lowered its revenue guidance for 2014 after reporting a third quarter earnings miss. As a result of this news, shares of Salix declined more than 38%, or $53.05 per share, during after-hours trading on November 6, 2014, to $85.50 per share, on unusually heavy volume.

If you are a member of the Class described above, you have until January 6, 2015, to move the Court to serve as lead plaintiff, if you meet certain legal requirements. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you suffered losses of $250,000 or more and wish to learn more about this action, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at http://www.howardsmithlaw.com.