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ASRT.US
id: 982

Assertio (ASRT) Disapointing Spectrum Acquisition Case

N.D. Illinois
Court
1:24-cv-00169
Case number
09 Mar 2023
Class period Start
08 Nov 2023
Class period End
05 Mar 2024
Lead Plaintiff motion deadline
  • $ASRT stockholder filed a claim vs. Assertio, its CEO & CFO for overstating the true potential of the Spectrum deal, which led to shareholder losses.
  • This news sent $ASRT flying 43%+ lower, wiping out $87M+ shareholder value.
On November 8, 2023, Assertio (ASRT) reported Q3 2023 financial results missing consensus estimates.
  • Peisert called the Company’s results disappointing, noting that the loss of Indocin exclusivity and Rolvedon results below expectations drove significant charges to net income.
  • Peisert also stated the Company was learning that certain aspects of the acquisition of Spectrum Pharmaceuticals Inc. may not be everything we initially expected.
On this news, $ASRT fell 43.19% and lost $87 million of its market capitalization, damaging shareholders.

On, January 3, 2024, Assertio announced Peisert stepping down from his role as CEO, sending $ASRT flying 10.96% lower.

This dismal result for the investors was preceded by a chain of significant events and fateful decisions made by the Company's leaders:
  • In July 2023, Assertio acquired Spectrum Pharmaceuticals, along with Spectrum’s injection asset Rolvedon. Closing the deal, CEO Dan Peisert stated: “We 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.”
  • Later, on August 3, 2023, Zydus Lifesciences, a generic pharmaceutical company, received approval from the FDA to manufacture and market 50mg indomethacin suppositories, the generic version of the Company’s Indocin Suppositories. Specifically, the FDA granted Zydus 180-day Competitive Generic Therapies exclusivity to market the product.
  • Following the FDA’s decision for Zydus, Assertio withdrew its 2023 financial outlook previously issued in May 2023.
On this news, $ASRT fell 45.6%.

Considering all the representations, investors have reasons to suspect Assertion and its CEO of overstating the true potential of Spectrum Acquisition and Indocin products to boost its net income. The first affected investor has already filed the initial claim in the court of N.D. of Illinois.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
09 November 2023
Filing date
05 January 2024
Lead Plaintiff Deadline
05 March 2024
Collecting participants…

Assertio Therapeutics Inc

Assertio Holdings, Inc., a commercial pharmaceutical company, provides medicines in the areas of neurology, rheumatology, and pain and inflammation. Its pharmaceutical products include INDOCIN, an ...

    Ticker
    ASRT.US
    ISIN
    US04546C2052
    CIK
    1005201
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    USA
    Address
    100 South Saunders Road, Lake Forest, IL, United States, 60045