NEW YORK, Nov. 18, 2016 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a class action lawsuit has been filed in the United States District Court for the Eastern District of Michigan on behalf of purchasers of Diplomat Pharmacy, Inc. ("Diplomat") (NYSE: DPLO ) securities between October 9, 2014 and November 2, 2016 (the "Class Period").
If you purchased Diplomat securities during the class period, and would like more information about getting involved in the Diplomat Securities Class Action , please contact Sheila Feerick at 1-800-221-0015, or email info@SafirsteinMetcalf.com .
If you wish to serve as lead plaintiff, you must move the Court no later than January 9, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. 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.
Diplomat is a specialty pharmacy that services patients with complex chronic diseases, including the dispensing, delivery, dosing and reimbursement of clinically intensive, high cost specialty drugs.
The Complaint alleges that Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked adequate internal controls over its financial reporting; (2) as a result the Company could not adequately calculate direct and indirect remuneration (DIR) fees; (3) the Company’s hepatitis C segment was not performing as previously disclosed to investors; (4) and therefore, the Company had overstated its full year 2016 guidance; and (5) that, as a result of the foregoing, Defendants’ statements about Diplomat’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On October 26, 2016, the Company announced that its Chief Financial Officer, Sean Whelan, would resign. On this news, the Company’s share price fell $3.57 per share, or over 12%, to close at $25.31 per share on October 26, 2016.
On November 2, 2016, after the market close, the Company reported third quarter 2016 results that fell below investors' expectations. The Company also lowered full year 2016 guidance, with the CEO and Chairman commenting, "we are disappointed with our third quarter results, which were significantly impacted by the softness in the hepatitis C business nationwide, as well as by DIR fees. The methodology and transparency around how PBMs are applying these DIR fees changed materially in 2016, and while we cannot reverse the impact they had on this quarter, we are working with our partners in the specialty pharmacy industry and with legislators to achieve an amicable solution to this problem.” Following this news, Diplomat shares fell $9.43 per share, or over 42%, to close at $12.95 per share on November 3, 2016.
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