On March 20, 2017 the University of Puerto Rico Retirement System was appointed lead plaintiff and Abraham, Fruchter and Twersky, LLP was appointed lead counsel in a class action lawsuit against Lannett Company, Inc. (the “Action”). The Action, filed in the United States District Court for the Eastern District of Pennsylvania and docketed under 2:16-cv-05932, was brought on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Lannett Co, Inc., (“Lannett”) securities between September 12, 2013 and November 3, 2016. The Action seeks to recover damages against defendants’ for violations of the federal securities laws, specifically the Securities Exchange Act of 1934.
Lannett is a generic drug manufacturer and has been the subject of several investigations by state governments and the federal government for engaging in anticompetitive conduct in the generic drug industry. On November 3, 2016 it was revealed that Lannett may be charged criminally for suspected price collusion in the generic drug market and on this news shares of Lannett fell 27%.
Plaintiffs’ allege that Lannett violated securities laws by failing to disclose that Lannett’s drug pricing relied on unsustainable pricing methodologies and that Lannett’s internal controls concerning its drug pricing methodologies were deficient.
This case presents unique and complex legal issues that Abraham, Fruchter & Twersky, LLP is prepared to confront while it diligently protects the rights and interests of the Class.