NEW YORK, June 3, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed on behalf of Endo International plc ("Endo" or the "Company") (NASDAQ: ENDP) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 16-cv-03912, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Endo International securities between March 2, 2015 and May 6, 2016 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Endo securities during the Class Period, you have until July 25, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
As a pharmaceutical company, Endo's revenue stream relies in part on Endo's ability to negotiate favorable arrangements with pharmacy benefit managers ("PBMs")—companies that manage prescription drug benefits for members of health plans—for the coverage of Endo's products by insurers. As PBMs have the power to determine which drugs are covered by a health plan, pharmaceutical companies often offer reduced prices, rebates, or other incentives to have their drugs listed on a PMB's formulary.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Endo Pharmaceuticals' arrangements with PBMs with respect to the migraine therapy Frova included questionable incentives intended to increase sales revenues; (ii) consequently, Endo's revenues and revenue projections relied in part on unsustainable arrangements; and (iii) as a result of the foregoing, Defendants' statements about Endo's business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
On May 5, 2016, after the market closed, Endo filed a Current Report on Form 8‑K with the SEC and issued a press release announcing the Company's financial and operating results for the quarter ended March 31, 2016 (the "Q1 2015 Earnings Release"). In the Q1 2015 Earnings Release, Endo reported a loss of $0.40 per diluted share, down from earnings of $0.11 per share in the first quarter of 2015. Additionally, Endo significantly cut its 2016 guidance, announcing targeted revenue in the range of $3.87 billion and $4.03 billion, down from the range of $4.32 billion to $4.52 billion that the Company had reaffirmed in March, less than two months earlier. Concurrently, the Company announced changes to its board and management structure, including the resignation of Brian Lortie, President of the Company's U.S. Branded Pharmaceuticals segment, pending selection of his replacement.
On this news, Endo's stock price fell $10.42 per share, or 39.19%, to close at $16.17 on May 6, 2016.
On May 6, 2016, after the market closed, Endo filed a Quarterly Report on Form 10-Q with the SEC for the quarter ended March 31, 2016 (the "Q1 2016 10-Q"). In the Q1 2016 10-Q, Endo reiterated the financial and operating results previously announced in the Q1 2016 Press Release.
On this news, Endo's stock price fell an additional $0.90 per share, or more than 5.57%, to close at $15.27 on May 9, 2016, the next trading day. In total, between May 5, 2016 and May 9, 2016, the Company's stock price fell $11.32 per share, or 42.57%, in two days of trading.
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