NEW YORK, Jan. 26, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Mallinckrodt plc ("Mallinckrodt" or the "Company") (NYSE: MNK). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Mallinckrodt and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
Since its August 2014 acquisition of Questcor Pharmaceuticals, Inc., Mallinckrodt's drug portfolio has included HP Acthar Gel ("Acthar"), an injectable adrenocorticotropic hormone ("ACTH") drug.
On November 16, 2016, Citron Research published a report (the "Citron Report") accusing Mallinckrodt and its Chief Executive Officer, Mark Trudeau, of downplaying the Company's reliance on Medicare and Medicaid for Acthar revenue. According to the Citron Report, a review of information published by the Centers for Medicare and Medicaid Services indicated that Medicare and Medicaid payments collectively amounted to 61.32% of Mallinckrodt's Acthar revenues in 2015. Following the Citron Report, Mallinckrodt's share price fell $8.15, or 12.02%, to close at $59.65 on November 16, 2016.
On November 29, 2016, during a conference call, Trudeau advised investors "Acthar now represents a significantly greater proportion of our operating income than one-third." On this news, Mallinckrodt's share price fell $5.25, or 9.1%, to close at $52.42 on November 29, 2016.
On January 18, 2017, the Federal Trade Commission ("FTC") announced that Mallinckrodt had agreed to pay $100 million in connection with a joint settlement with the FTC and several states concerning charges that the Company's efforts to stifle competing ACTH drugs had violated U.S. antitrust laws. On news of the settlement, Mallinckrodt's share price fell $2.89, or 5.85%, to close at $46.53 on January 18, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP