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PRGO.US
id: 1179

Perrigo (PRGO) $97 Million Investor Settlement Over Misguiding Growth Prospects

D. New Jersey
Court
1:16-cv-02805
Case number
21 Apr 2015
Class period Start
03 May 2017
Class period End
26 Aug 2024
Claim deadline
Perrigo (PRGO) agreed to settle $97M with investors to end claims over Mylan's purchase offer and the financial issues.

Case Details:

On April 8, 2015, Mylan offered to buy Perrigo. Investors reacted positively, pushing the $PRGO price up.

On April 21, 2015, Perrigo rejected Mylan's offer claiming undervaluation. Perrigo's campaign convinced shareholders to decline on November 13, 2015.
  • On February 18, 2016, Perrigo reported lower Q4 2015 results and slashed 2016 earnings guidance.
  • They also revealed a sudden need to restructure parts of the Omega business, leading to a $185M impairment charge related to Omega's assets.
On April 22, 2016, Reuters reported Perrigo's CEO would join Valeant Pharmaceuticals. Perrigo confirmed the CEO's resignation.

Then, the Company slashed its 2016 earnings guidance and cited increased competition and underperformance in Omega.

On May 12, 2016, Perrigo reported a first-quarter net loss of $0.93 per share (revised to $2.34 per share) due to a $467M impairment charge related to the Omega acquisition.

Perrigo has now decided to end all allegations related to the Mylan offer and to the financial issues by paying a $97M settlement to investors.
Case Status
Accepting Claims
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.693
Filing date
18 May 2016
Plaintiffs
Roofers' Pension Fund
Attorneys
Bronstein, Gewirtz & Grossman, LLC, Lowenstein Sandler PC, Pomerantz LLP
Defendants
Joseph C. Papa, Judy Brown, Laurie Brlas, Gary M. Cohen, Marc Coucke, Jacqualyn A. Fouse, Ellen R. Hoffing, Michael R. Jandernoa, Gerald K. Kunkle, Jr., Herman Morris, Jr.
Judge
Madeline C. Arleo
Administrator
JND Legal Administration
Trades matching type
FIFO
+$97,000,000
Cash Settlement Amount

Frequently Asked Questions

Perrigo Company PLC

Perrigo Company plc provides over-the-counter health and wellness solutions to enhance individual well-being in the United States, Europe, and internationally. It operates through Consumer Self-Car...

    Ticker
    PRGO.US
    ISIN
    IE00BGH1M568
    CIK
    1585364
    Sector
    Healthcare
    Industry
    Drug Manufacturers - Specialty & Generic
    Country
    USA
    Address
    The Sharp Building, Dublin, Ireland, D02 TY74