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Robbins Arroyo LLP: Perrigo Company plc (PRGO) Misled Shareholders According to a Recently Filed Class ActionShareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Perrigo Company plc (NYSE: PRGO) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Perrigo Company plc ("Perrigo") securities between April 21, 2015 and May 11, 2016, and on behalf of all investors in Perrigo as of November 13, 2015, for alleged violations of the Securities Exchange Act of 1934 by Perrigo's officers and directors. Perrigo, together with its subsidiaries, develops, manufactures, markets, and distributes over-the-counter ("OTC") consumer goods and pharmaceutical products worldwide.
View this information on the law firm's Shareholder Rights Blog: Perrigo Accused of Improperly Dissuading Investors From Agreeing to Tender Offer According to the complaint, on April 8, 2015, competing drug manufacturer Mylan offered to purchase Perrigo for $205 per share, representing a nearly 30% premium to Perrigo's toal market capitalization. On April 21, 2015, Perrigo publicly rejected Mylan's offer and falsely told investors that it "substantially undervalues Perrigo and its growth prospects" and that the offer does not take into account the full benefits of its acquisition of Omega Pharma, a large OTC healthcare company in Europe. Even though Mylan subsequently raised its offer to approximately $235 per share, Perrigo continued to engage in a public campaign to convince shareholders to reject Mylan's proposal, citing the 5-10% organic revenue growth that it would achieve as a standalone company. The complaint alleges that these statements were misleading because Perrigo knew that: (1) Mylan's offer did not undervalue Perrigo; (2) Perrigo would not be able to achieve 5-10% organic growth as a standalone company; (3) the company's "durable competitive position and durable growth strategy" was rapidly deteriorating; and (4) Perrigo was experiencing serious issues integrating the Omega acquisition and significantly overpaid for Omega's business. On November 13, 2015, the majority of Perrigo's shareholders declined to tender their shares, making the Mylan tender offer a failure. On February 18, 2016, Perrigo reported disappointing fourth quarter 2015 financial results, and announced that it would need to take a $185 million impairment charge related to its restructuring of the Omega business. On April 22, 2016, Reuters (News - Alert) reported that Perrigo's Chief Executive Officer ("CEO") would be appointed as the new CEO of competing pharmaceutical company Valeant Pharmaceuticals. Then, on April 25, 2016, Perrigo drastically lowered its earnings guidance for 2016 and disclosed issues with the integration of Omega, and said that it was contemplating another impairment charge associated with the Omega acquisition. Since news of Perrigo's financial struggles became public, Perrigo stock declined over 43% to close at $89.04 per share on May 12, 2016. Perrigo Shareholders Have Legal Options Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, [email protected], or via the shareholder information form on the firm's website. Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. Attorney Advertising. Past results do not guarantee a similar outcome.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160524006713/en/ |
