ASSERTIO INVESTOR DEADLINE APPROACHING
- Investors with losses exceeding $25,000 in Assertio between March 9, 2023, and November 8, 2023, are urged to contact Faruqi & Faruqi for potential claims.
- The investigation alleges that Assertio executives made false statements impacting the company's profitability and stock performance.
- Assertio stock price fell significantly after FDA approval for generic competition and disappointing Q3 financial results.
- CEO Dan Peisert stepped down following a series of negative events affecting Assertio's stock performance.
- Assertio's stock price experienced significant declines due to FDA approval for generic competition and disappointing Q3 financial results.
- CEO Dan Peisert's resignation further impacted Assertio's stock price negatively.
Insights
The allegations against Assertio Holdings, Inc. suggest a potential violation of federal securities laws, which could have significant legal and financial implications for the company. The claims center on the accusation that Assertio made false and/or misleading statements about the sustainability of its net income from Indocin products and the value of its Spectrum Acquisition. The outcome of such litigation could lead to substantial penalties and necessitate changes in corporate governance and disclosure practices. Investors and stakeholders should monitor the progress of this case as it could influence investor confidence and impact the company's financial health.
The sharp declines in Assertio's stock price following the FDA's approval of a generic competitor and the subsequent withdrawal of the financial outlook reflect the market's sensitivity to changes in a company's competitive landscape and earnings projections. The reported earnings miss and revenue shortfall in Q3 2023 further exacerbated investor concerns, leading to a significant erosion of shareholder value. The situation highlights the risks associated with investing in pharmaceutical companies that rely heavily on a limited portfolio of products for profitability, especially when facing generic competition. The broader implications for Assertio's financial strategy and its ability to forecast and mitigate risks will be closely scrutinized by investors.
Assertio's challenges with the Indocin products and the Spectrum Acquisition underline the importance of robust market analysis and accurate forecasting in the pharmaceutical industry. The competitive generic therapy exclusivity granted to Zydus underscores the impact of regulatory decisions on market dynamics. The industry must continuously assess the potential for generic competition and its timing, as well as the true market potential of acquisitions. The case with Assertio serves as a cautionary tale for other companies in the sector about the consequences of overestimating product value and underestimating competitive threats.
Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding
If you suffered losses exceeding
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Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (2) the Spectrum Acquisition was less valuable than Assertio had represented to investors; (3) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on the Company's profitability; and (4) as a result, Defendants' public statements were materially false and/or misleading at all relevant times.
In July 2023, Assertio acquired Spectrum Pharmaceuticals, Inc. ("Spectrum"), a biopharmaceutical company focused on novel and targeted oncology, along with Spectrum's injection asset Rolvedon (the "Spectrum Acquisition"). In a press release announcing the closing of the acquisition, Assertio's Chief Executive Officer ("CEO") Defendant Dan Peisert ("Peisert") was quoted as stating, in relevant part, "[w]e look forward to building on the successful early results in the [Rolvedon] Injection launch for the remainder of 2023, driving the business toward [its] goal of accretive contribution to our Adjusted EPS and operating cash flow in 2024."
On August 3, 2023, Zydus Lifesciences Limited ("Zydus"), a generic pharmaceutical company, received approval from the
On this news, Assertio's stock price fell
Then, on November 8, 2023, Assertio issued a press release announcing its financial results for its third quarter ("Q3") of 2023. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of
On this news, Assertio's stock price fell
On, January 3, 2024, Assertio issued a press release announcing that Defendant Peisert was stepping down from his role as the Company's CEO.
On this news, Assertio's stock price fell
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Assertio's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.
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FAQ
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