NEW YORK, March 23, 2017 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Mallinckrodt Public Limited Company (“Mallinckrodt” or the “Company”) (NYSE: MNK ) and certain of its officers, on behalf of shareholders who purchased Mallinckrodt securities between November 25, 2014 and January 18, 2017 inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/mnk .
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made false and misleading statements and failed to disclose material adverse facts regarding sustainability of the Company’s monopolistic HP Acthar Gel (“Acthar”) profits and the exposure of Acthar to reimbursement rates by Medicare and Medicaid. Furthermore, Defendants made false and/or misleading statements and/or failed to disclose that Acthar’s monopoly position as the only FDA-approved adrenocorticotropic hormone preparation was the result of illicit anticompetitive measures and did not reveal that its growing reliance on Medicare and Medicaid meant that Mallinckrodt’s monopolistic Acthar revenue would be threatened if the government pursued action to limit the price paid for this drug by taxpayers. Once this news was made public, Mallinckrodt stock dropped, damaging investors.
On November 16, 2016, Citron Research published an article called “Mallinckrodt CEO FRAUD exposed by the new Medicare Drug Dashboard." The article accuses Mallinckrodt’s CEO, Mark C. Trudeau, of lying to stockholders on a conference call on October 5, 2015. Turdeau said that the Company’s total Medicare and Medicaid spending on Acthar is “a little bit higher than” 25% of Acthar’s sales. Citron Research then revealed the Centers for Medicare & Medicaid Services’s data that showed Medicare and Medicaid spending on Acthar in 2015 that was roughly 61% of Acthar’s sales. Following this news, Mallinckrodt stock dropped $8.15 per share or about 12% to close at $59.65 per share on November 16, 2016.
Later, on January 18, 2017, the Federal Trade Commission revealed that Mallinckrodt had agreed to pay $100 million in settlement fees following an investigation against its anticompetitive and unlawful efforts to prevent an alternative ACTH treatment from reaching the U.S. market.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/mnk or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Mallinckrodt you have until March 27, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact: Bronstein, Gewirtz & Grossman, LLC Peretz Bronstein or Yael Hurwitz 212-697-6484 | info@bgandg.com
