PR Newswire
PHILADELPHIA, Jan. 12, 2024
PHILADELPHIA, Jan. 12, 2024 /PRNewswire/ -- Berger Montague advises investors that a securities fraud class action lawsuit has been filed against Assertio Holdings, Inc ("Assertio") (NASDAQ: ASRT) on behalf of purchasers of Assertio's securities between March 9, 2023 and November 8, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Assertio securities during the Class Period may, no later than March 5, 2024, seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Berger Montague: James Maro at [email protected] or (267) 637-3176, or Andrew Abramowitz at [email protected] or (215) 875-3015 or CLICK HERE.
Assertio is a commercial pharmaceutical company that offers differentiated products to patients utilizing a non-personal promotional model. One of Assertio's primary pharmaceutical products is Indocin, an oral and suppository solution for the treatment of moderate to severe rheumatoid arthritis. In July 2023, Assertio acquired biopharmaceutical company Spectrum Pharmaceuticals, Inc. ("Spectrum"), along with Spectrum's injection asset Rolvedon (the "Spectrum Acquisition").
On August 3, 2023, Zydus Lifesciences Limited received approval from the U.S. Food and Drug Administration ("FDA") to manufacture and market a generic version of Indocin. That same day, Assertio issued a press release announcing its Q2 2023 financial results and "withdrawing its 2023 financial outlook to assess the recent news of a generic indomethacin suppository approved by the [FDA]."
Following this news, Assertio's stock price fell $2.44 per share, or 45.6%, to close at $2.91 per share on August 4, 2023.
Then, on November 8, 2023, Assertio issued a press release announcing its Q3 2023 financial results. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million. In addition, the press release stated, in part, "Our third quarter results were disappointing, with the loss of Indocin exclusivity and Rolvedon results below expectations driving significant charges to our net income."
Following this news, Assertio's stock price fell $0.92 per share, or 43.19%, to close at $1.21 per share on November 9, 2023.
According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Assertio's reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (ii) the Spectrum Acquisition was less valuable than Assertio had represented to investors; and (iii) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on Assertio's profitability.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Contacts:
James Maro, Senior Counsel
Berger Montague
(267) 637-3176
[email protected]
Andrew Abramowitz, Senior Counsel
Berger Montague
(215) 875-3015
[email protected]
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SOURCE Berger Montague
