RADNOR, Pa., — The law firm of Kessler Topaz Meltzer & Check, LLP reminds investors that a securities fraud class action lawsuit has been filed in United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of Lannett Company, Inc. (NYSE: LCI) (“Lannett”) securities between February 7, 2018 and August 17, 2018, inclusive (the “Class Period”).
REMINDER: Investors who purchased Lannett securities during the Class Period may, no later than October 26, 2018, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this action please visit www.ktmc.com/lannett-securities-class-action
According to the complaint, Lannett develops, manufactures, packages, markets and distributes solid oral (tablets and capsules), extended release, topical, and oral solution finished dosage forms of drugs that address a wide range of therapeutic areas. At all relevant times, Lannett had an exclusivity agreement with its primary supplier, Jerome Stevens Pharmaceuticals (“JSP”), owned and operated by the Steinlauf family, set to expire on March 23, 2019. JSP’s products have historically accounted for at least one-third of Lannett’s sales.
The Class Period commences on February 7, 2018, when Lannett issued a press release announcing the company’s financial and operating results for the second fiscal quarter ended December 31, 2017.
The complaint alleges that on August 20, 2018, prior to the market opening, Lannett issued a press release stating, in part, “that its distribution agreement with Jerome Stevens Pharmaceuticals (JSP), which expires on March 23, 2019, will not be renewed.” Following this news, Lannett’s share price fell $8.15, or 60.3%, to close at $5.35 on August 20, 2018.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) Lannett faced a substantial risk of the loss of its exclusivity agreement with JSP; (ii) accordingly, Lannett’s reported revenues were unsustainable, and (iii) as a result, Lannett’s public statements were materially false and misleading at all relevant times.
Investors who wish to discuss this securities fraud class action and their legal options are encouraged to contact Kessler Topaz Meltzer & Check, LLP (James Maro, Jr., Esq. or Adrienne Bell, Esq.) at (888) 299-7706 or at [email protected].
Lannett investors may, no later than October 26, 2018, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country involving securities fraud, breaches of fiduciary duties and other violations of state and federal law. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.