In a statement Wednesday, the developer of injectable drug systems said the blogs posted on Seeking Alpha contained "false and misleading information" and that it had requested the SEC investigate the short-sellers for stock manipulation and illicit gains.
"Most of these allegations relate to a wrongful termination lawsuit by a former employee who was terminated "for cause," and the related SEC review of the matter, which Unilife first disclosed more than 18 months ago and has repeated in subsequent regulatory filings and earnings calls," the company said in the statement.Unilife also said no officer has sold stock since the company listed in 2010 and that both the CEO and COO have purchased in excess of $4 million in stock in recent years. By late afternoon Wednesday, shares had added 11.3% to $3.55, recouping losses suffered over Tuesday's session. Must Read: Warren Buffett's 10 Favorite Growth Stocks STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.