Endo International plc (Nasdaq: ENDP)
A class action has been commenced on behalf of purchasers of Endo International plc (Nasdaq: ENDP) common stock between September 28, 2015 to February 28, 2017 (the “Class Period”).
The complaint charges Endo and certain of its former officers with violations of the Securities Exchange Act of 1934. Endo develops, manufactures, markets and distributes pharmaceutical products and generic drugs to medical and healthcare industries around the globe.
On September 28, 2015, Endo announced it had completed its $8.05 billion acquisition of Par Pharmaceutical Holdings, Inc. (“Par Pharmaceutical”) from the private investment firm TPG (the “Par Pharmaceutical Acquisition”). Par Pharmaceutical’s subsidiary, Par Pharmaceutical Companies Inc., is a manufacturer and distributor of generic drugs.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations. Specifically, defendants failed to disclose that Par Pharmaceutical had colluded with several of its industry peers to fix generic drug prices in violation of federal antitrust laws. As a consequence, while Endo touted the competitive advantages of the Par Pharmaceutical Acquisition, stating it provided “a compelling opportunity to drive future double-digit growth, serve our customers and build shareholder value,” these advantages, and Endo’s revenues, were in part the result of Par Pharmaceutical’s illegal conduct and thus were unsustainable. As a result of defendants’ false statements and/or omission during the Class Period, Endo securities traded at artificially inflated prices, with its stock price reaching a high of more than $60 per share.
On November 3, 2016, media outlets reported that U.S. prosecutors were considering filing criminal charges by the end of 2016 against Par Pharmaceutical and several other pharmaceutical companies for unlawfully colluding to fix generic drug prices. On this news, Endo’s stock price fell $3.54 per share, or more than 19%, to close at $14.63 per share on November 3, 2016.
Then on March 1, 2017, Endo filed its Annual Report on Form 10-K with the SEC, reporting in full the Company’s financial and operating results for the fourth quarter and year ended December 31, 2016. The Company reported a net loss of $3.35 billion, or $15.03 per diluted share, on revenue of $4.01 billion, citing, in part, a 27% increase in cost of revenues and a decrease in gross margins from 36% in 2015 to 34% in 2016, reflecting the extent to which Par Pharmaceutical’s unlawful conduct had previously inflated Endo’s revenues. On this news, Endo’s stock price fell $0.83 per share, or 6%, to close at $12.82 per share on March 1, 2017.
If you are a current shareholder and purchased stock between September 28, 2015 to February 28, 2017, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.