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

It is still possible to file a late claim. The court will decide whether to accept late claims or not.

D. New Jersey

Court

1:16-cv-02805

Case number

04/21/2015

Class period Start

05/03/2017

Class period End

08/26/2024

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 Late Claims

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.693

Filing date

05/18/2016

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

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