The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company lacked adequate internal controls over its financial reporting; (2) as a result the Company could not adequately calculate direct and indirect remuneration ("DIR") fees; (3) the Company's hepatitis C segment was not performing as previously disclosed to investors; (4) and therefore, the Company had overstated its full-year 2016 guidance.
Specifically, on November 2, 2016, Diplomat announced third quarter 2016 results that were below investors' expectations and lowered its full year 2016 guidance. The Company's Chief Executive Officer attributed the poor operating results to "softness in the hepatitis C business" and DIR fees.
On this news, Diplomat's share price fell from $22.38 per share on November 2, 2016 to a closing price of $12.95 on November 3, 2016—a $9.43 or a 42.1% drop.
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If you invested in Diplomat stock or options between October 9, 2014 and November 2, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/DPLO. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding Diplomat's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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SOURCE Faruqi & Faruqi, LLP