NEW YORK, Dec. 16, 2017 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Endo International plc ("Endo" or the "Company") (NASDAQ: ENDP) and certain of its officers. The class action, filed in United States District Court, for the Eastern District of Pennsylvania, and docketed under 17-cv-05114, is on behalf of a class consisting of investors who purchased or otherwise acquired Endo securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Endo securities between September 28, 2015, and February 28, 2017, both dates inclusive, you have until January 16, 2018, 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 email@example.com 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 amount of shares purchased.
Endo International plc provides specialty healthcare solutions. The Company develops, manufactures, markets, and distributes pharmaceutical products and generic drugs. Endo International offers its products to the medical and healthcare industries around the globe.
On September 28, 2015, Endo announced that 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 Companies Inc. is a manufacturer and distributor of generic drugs and operates as a subsidiary of Par Pharmaceutical.
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) Par Pharmaceutical had colluded with several of its industry peers to fix generic drug prices; (ii) the foregoing conduct constituted a violation of federal antitrust laws; (iii) the competitive advantages of the Par Pharmaceutical Acquisition, which Endo touted to its shareholders as, inter alia, "a compelling opportunity to drive future double-digit growth, serve our customers and build shareholder value," were in fact derived in part from Par Pharmaceutical's illegal conduct and thus unsustainable; (iv) for the same reasons, the "impressive track record of delivering strong operating results" that Endo attributed to former Par Pharmaceutical executive Paul Campanelli in announcing his promotion to Endo's CEO consisted in part of illegal conduct; (v) for the foregoing reasons, Endo's revenues during the Class Period were in part the result of illegal conduct and likewise unsustainable; and (vi) as a result of the foregoing, Endo's public statements were materially false and misleading at all relevant times.
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. In an article titled "U.S. Charges in Generic-Drug Probe to Be Filed by Year-End."
On this news, Endo's share price fell $3.54, or 19.48%, to close at $14.63 on November 3, 2016.
On March 1, 2017, Endo filed an Annual Report on Form 10-K with the SEC, reporting in full the Company's financial and operating results for the quarter and year ended December 31, 2016. Reflecting the extent to which Par Pharmaceutical's unlawful conduct had previously inflated Endo's revenues, 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.
On this news, Endo's share price fell $0.83, or 6.08%, to close at $12.82 on March 1, 2017.
On October 31, 2017, attorneys general from 46 states and the District of Columbia amended their antitrust case on generic drug price-fixing conspiracy against the $75 billion generic drug industry to add 18 new companies, including Endo's wholly-owned subsidiary Par Pharmaceutical Companies, Inc. The states allege these companies violated antitrust laws to artificially inflate the prices of the drugs by agreeing to "collectively raise and/or maintain prices for a particular generic drug," and agreeing to divvy up the market for the drugs to reduce competition by "refusing to bid for particular customers or by providing a cover bid that they knew would not be successful." This in effect "avoided price erosion" and "increased pricing for targeted products without triggering a 'fight to the bottom' among existing competitors."
According to the amended complaint, these companies conspired to unreasonably restrain trade, artificially inflate and reduce competition in the generic pharmaceutical industry for the markets of fifteen generic drugs: Acetazolamide, Doxycycline Hyclate Delayed Release, Doxycycline Monohydrate, Fosinopril-Hydrochlorothiazide, Glipizide-Metformin, Glyburide, Glyburide-Metformin, Leflunomide, Meprobamate, Nimodipine, Nystatin, Paromomycin, Theophylline, Verapamil and Zoledronic Acid. As a result of the conspiracy, "[p]rices for dozens of generic drugs have risen – while some have skyrocketed, without explanation, sparking outrage from politicians, payers, and consumers across the country whose costs have doubled, tripled, or even increased 1,000% or more."
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