Company: Diplomat Pharmacy, Inc.
Class Period: February 26, 2018 — February 21, 2019
Court: U.S.D.C. – Central District of California
Deadline: April 25, 2019
A shareholder class action complaint has been filed against Diplomat Pharmacy, Inc. (“Diplomat”) on behalf of investors who purchased shares of the Company’s stock between February 26, 2018 and February 21, 2019 (the “Class Period”).
The complaint alleges that the defendants made false and misleading statements and/or failed to disclose material adverse information to investors during the Class Period concerning the Company’s success in integrating and growing its pharmacy benefit management (“PBM”) business. Specifically, the complaint alleges that defendants failed to disclose or indicate that: (1) Diplomat had downplayed its success in integrating and growing its PBM business, which included LDI Integrated and National Pharmaceutical, two companies Diplomat had acquired in late 2017; (2) consequently, Diplomat would need to record a non-cash impairment charge upwards of approximately $630 million relating to its PBM business and these 2017 acquisitions; and (3) due to the foregoing, Diplomat would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior.
According to the complaint, on February 22, 2019, Diplomat announced that it was postponing the release of its Form 10-K for the fiscal year ended December 31, 2018 due to a “recent determination” that it would need to record a non-cash impairment charge upwards of approximately $630 million relating to 2017 acquisitions for its PBM business. Following this news, shares of the Company’s stock fell $7.59 per share, or over 56% in value, to close on February 22, 2019 at $5.87 per share.
IMPORTANT DEADLINE: Diplomat investors may, no later than April 25, 2019, seek to be appointed as a lead plaintiff representative of the class.
For additional information about this action, or to discuss your legal rights and options with respect to this action, please contact Kaskela Law LLC at (888) 715 – 1740 or complete the information form on this page.