Lannett Company, Inc. reportedly made false claims and inflated stock trade prices. Did this pharmaceutical company mislead customers and investors as alleged in a new class action lawsuit?
New Class Action Lawsuit Against Lannett Company, Inc.
Sept , 2014 Ryan & Maniskas, LLP announces that a class action pharmaceutical litigation lawsuit has been filed in United States District Court for the Eastern District of Pennsylvania on behalf of investors who acquired Lannett Company, Inc. (“Lannett” or the “Company”) LCI, +.92% securities during the period from September 10, 2013 through July 16, 2014 (the “Class Period”). Lannett develops, manufactures, markets and distributes generic versions of brand pharmaceutical products. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that: (1) the Company was fixing, maintaining, and controlling prices of digoxin, a drug used to treat congestive heart failure, in violation of Connecticut antitrust laws; (2) the Company was allocating and dividing customers and territories with competitors relating to the sale of digoxin in violation of Connecticut antitrust laws; (3) the Company’s anti-competitive practices subjected Lannett to heightened regulatory scrutiny, including possible investigation by the Connecticut Office of the Attorney General (“CTAG”); and (4) as a result of the foregoing, Lannett’s public statements were materially false and misleading at all relevant times. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period. According to the Complaint, on July 16, 2014, the Company issued a press release and filed a Form 8-K with the U.S. Securities and Exchange Commission announcing that the Company received interrogatories and a subpoena from the CTAG concerning its investigation into pricing and customer/territorial division of digoxin. On this news, shares in Lannett plummeted more than 17%, closing at $39.04 per share on July 16, 2014, on unusually heavy trading volume. If you are a member of the class, you may, no later than October 27, 2014, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Originally posted on marketwatch.com by PR Newswire. Los Angeles Pharmaceutical Lawyer – Ball and Bonholtzer, Trial Lawyers