Bernstein Liebhard LLP Announces That A Suit Has Been Filed Against Perrigo Company plc
May 19, 2016
Bernstein Liebhard LLP today announced that a securities class action has been filed in the United States District Court for the District of New Jersey on behalf of a class (the “Class”) consisting of all persons or entities who purchased or otherwise acquired the common stock of Perrigo Company, plc (“Perrigo” or the “Company”) (NYSE: PRGO) between April 21, 2015 and May 11, 2016, inclusive (the “Class Period”). The complaint alleges that Defendants violated Sections 10(b), 14(e) and 20(a) of the Securities Exchange Act of 1934.
Perrigo is a manufacturer of generic drugs and over-the-counter healthcare products. Plaintiffs allege that Defendants made false and/or misleading statements about Perrigo’s financial condition and growth prospects in an effort to convince shareholders to reject a proposal by Mylan, a competing drug company, to purchase Perrigo.
On April 8, 2015, Mylan offered to purchase Perrigo for $205 per share, representing a nearly 30% premium to the Company’s total market capitalization. Mylan’s approach was well received by investors, and the price of Perrigo stock increased to as high as $215 per share in intraday trading on April 8.
On April 21, 2015, Perrigo publicly rejected Mylan’s offer and told investors that the offer substantially undervalued Perrigo and its growth prospects, and that the offer did not take into account the full benefits of the Company’s acquisition of Omega Pharma N.V. (“Omega”). Over the next six months, Perrigo continued to engage in a public campaign to reject Mylan’s proposal, despite having subsequently raised its offer to approximately $235 per share.
On November 13, 2015, a majority of Perrigo’s shareholders declined to tender their shares, defeating Mylar’s tender offer. On the news the tender offer failed, Perrigo shares fell 6%.
On February 18, 2016, Perrigo reported lower than expected fourth quarter 2015, revenue, margins, earnings, and cash flow and decreased earnings guidance for 2016. The Company also announced that it would need to take a $185 million impairment charge related to Omega’s assets. On this news Perrigo shares fell $14.77 per share.
On April 25, 2016, Perrigo announced the resignation of its Chief Executive Officer, lowered its 2016 earnings guidance, and reporter weak preliminary first quarter 2016 results. The Company attributed its poor financial performance, in part, to issues with the Omega acquisition. On this news Perrigo shares fell $21.95 per share.
On May 12, 2016, Perrigo announced a first quarter net loss of $0.93 per share which the Company largely attributed to an additional $467 million impairment charge relating to the Omega acquisition. On this news Perrigo shares fell $3.71 per share.
Plaintiffs seek to recover damages on behalf of all Class members who invested in Perrigo common stock as of November 13, 2015, the deadline for Perrigo investors to tender their shares in connection with the tender offer by Mylan. If you invested in Perrigo common stock as described above, and lost money on the transactions, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 18, 2016.
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. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3.5 billion for its clients. The Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the District of New Jersey.