Company: Lannett Company, Inc.
Class Period: February 7, 2018 — August 17, 2018
Court: U.S.D.C. – Eastern District of Pennsylvania
Deadline: October 26, 2018
Kaskela Law LLC has filed a shareholder class action lawsuit against Lannett Company, Inc. (NYSE: LCI) (“Lannett” or the “Company”) on behalf of purchasers of the Company’s securities between February 7, 2018 and August 17, 2018, inclusive (the “Class Period”).
Lannett develops, manufactures, packages, markets, and distributes drugs that address a wide range of therapeutic areas. At all relevant times, Lannett had an exclusivity agreement with its primary supplier, Jerome Stevens Pharmaceuticals (“JSP”). JSP’s products have historically accounted for over one-third of Lannett’s sales.
On August 20, 2018, Lannett disclosed that its distribution agreement with JSP will not be renewed. Following this news, shares of Lannett’s common stock fell $8.15 per share, or over 60%, to close on August 20, 2018 at $5.35.
The shareholder class action complaint alleges that defendants made a series of false and misleading statements and failed to disclose to investors during the Class Period that: (i) Lannett faced a substantial risk of the loss of its exclusivity agreement with JSP; (ii) accordingly, Lannett’s reported revenues were unsustainable, and (iii) as a result, Lannett’s public statements were materially false and misleading at all relevant times. The complaint further alleges that, as a result of the foregoing, investors purchased Lannett’s securities at artificially inflated prices during the Class Period and have suffered significant investment losses.
IMPORTANT DEADLINE: Investors who purchased Lannett’s securities during the Class Period may, no later than October 26, 2018, seek to be appointed as a lead plaintiff representative of the investor class.
Investors who purchased the Company’s securities during the Class Period and suffered a financial loss are encouraged to complete the information form on this page, or to contact Kaskela Law at (888) 715 – 1740 to discuss their important legal rights and recovery options.