Assertio Holdings, Inc. (NASDAQ: ASRT) Securities Fraud Class Action

Assertio investors may receive additional information about the case by clicking the link "Submit Your Information" above.  If you are a member of the class described below, you may no later than March 5, 2024 move the Court to serve as lead plaintiff of the class, if you so choose.

A class action lawsuit has been filed on behalf of those who purchased or acquired Assertio Holdings, Inc. (“Assertio”) (NASDAQ: ASRT) securities between March 9, 2023 and November 8, 2023, both dates inclusive (the “Class Period”). 

Case Background:
Assertio is a commercial pharmaceutical company. One of Assertio's primary products is Indocin, an oral and suppository solution for the treatment of moderate to severe rheumatoid arthritis. 

In July 2023, Assertio acquired Spectrum Pharmaceuticals, Inc. ("Spectrum"), which included Spectrum's injection asset Rolvedon. In a press release announcing the closing of the acquisition, Assertio's CEO stated, "[w]e look forward to building on the successful early results in the [Rolvedon] Injection launch for the remainder of 2023, driving the business toward [its] goal of accretive contribution to our Adjusted EPS and operating cash flow in 2024."

On August 3, 2023, Zydus Lifesciences Limited ("Zydus"), a generic pharmaceutical company, received approval from the FDA to manufacture and market a generic version of Assertio's Indocin Suppositories. Following the FDA's decision, Assertio withdrew its 2023 financial outlook previously issued in May 2023.  

Following this news, Assertio's stock price fell $2.44 per share, or 45.6%, to close at $2.91 per share on August 4, 2023.

Despite the foregoing, Assertio continued to tout the acquisition of Spectrum and the purported value that Rolvedon would bring to Assertio and its investors.  The company also downplayed the FDA’s decision to grant Zydus approval to manufacture and market the generic version of Indocin Suppositories. 

Then, on November 8, 2023, Assertio issued a press release announcing its Q3 2023 financial results which missed consensus estimates for earnings per share by $0.09 and missed revenue consensus estimates by $14.8 million. Assertio’s CEO called the Q3 results "disappointing," noting that "the loss of Indocin exclusivity and Rolvedon results below expectations [drove] significant charges to our net income." Assertio also indicated that “certain aspects” of its July 31, 2023 acquisition of Spectrum "may not be everything we initially expected."

Following this news, Assertio's stock price fell $0.92 per share, or 43.19%, to close at $1.21 per share on November 9, 2023.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) Assertio's reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (2) the Spectrum acquisition was less valuable than Assertio had represented to investors; (3) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum acquisition were likely to have on the company's profitability; and (4) as a result, Defendants' public statements were materially false and/or misleading at all relevant times. 

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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case.  Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP:  Jonathan Naji, Esq. (484) 270-1453 or via e-mail at info@ktmc.com.  If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.