According to the complaint, Endo develops, manufactures, and distributes pharmaceutical products and devices worldwide. Endo’s U.S. Branded Pharmaceuticals segment includes Frova®, the company’s migraine therapy. The company’s subsidiary Endo Pharmaceuticals, Inc. (“Endo Pharmaceuticals”) is headquartered in Malvern, Pennsylvania. Endo Pharmaceuticals purports to develop and deliver high-value branded pharmaceutical products.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, the complaint alleges that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Endo Pharmaceuticals’ arrangements with pharmacy benefit managers (“PBMs”) with respect to the migraine therapy Frova® included questionable incentives intended to increase sales revenues; (ii) consequently, Endo’s revenues and revenue projections relied in part on unsustainable arrangements; and (iii) as a result of the foregoing, the defendants’ statements about Endo’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On May 5, 2016, after the market closed, Endo issued a press release announcing its financial and operating results for the quarter ended March 31, 2016, and reporting a loss of $0.40 per diluted share, down from earnings of $0.11 per share in the first quarter of 2015. Further, Endo cut its 2016 guidance, announcing targeted revenue in the range of $3.87 billion and $4.03 billion, down from $4.32 billion to $4.52 billion that the company reaffirmed less than two months earlier. The company also announced the resignation of Brian Lortie, President of the company’s U.S. Branded Pharmaceuticals segment. Following this news, Endo’s stock price fell $10.42 per share, or 39.19%, to close at $16.17 on May 6, 2016.
Then, on May 6, 2016, after the market closed, Endo filed a Quarterly Report on Form 10-Q with the SEC for the quarter ended March 31, 2016. The company announced that in March 2016, it received a Civil Investigative Demand (“CID”) from the U.S. Attorney’s Office for the Southern District of New York. The CID requested documents and information regarding contracts with PBMs regarding Frova®. Following this news, Endo’s stock price fell an additional $0.90 per share, or more than 5.57%, to close at $15.27 on May 9, 2016. In total, between May 5, 2016 and May 9, 2016, the company’s stock price fell $11.32 per share, or 42.57%, in two days of trading.
If you are a member of the class described above, you may no later than July 25, 2016 move the Court to serve as lead plaintiff of the class, if you so choose.
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. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
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