Diplomat Pharmacy 19
Settlement of Mortimer v. Diplomat Pharmacy, Inc., et al.
The parties have reached a settlement of this action, pending in the United States District Court for the Northern District of Illinois, Eastern Division. The settlement provides for the payment of $15,500,000 for the benefit of eligible Class Members. Lead Plaintiff Iron Workers Local No. 25 Pension Fund alleged violations of §§10(b) and 20(a) of the Exchange Act on behalf of a class of all purchasers of Diplomat Pharmacy, Inc. (“Diplomat” or the “Company”) common stock between February 26, 2018 and November 11, 2019, inclusive. Among other things, the Complaint alleged violations of the Exchange Act premised on alleged false and misleading statements that portrayed Diplomat’s acquisition and integration of two pharmacy benefit managers (“PBMs”) as a success that was growing the PBM business while concealing and omitting to disclose integration and service failures that were leading to customer complaints and losses. Lead Plaintiff alleged that the false and misleading statements artificially inflated Diplomat’s stock price and when the truth was eventually disclosed, the price of Diplomat stock declined.
The Class consists of all Persons who purchased Diplomat common stock from February 26, 2018 through and including November 11, 2019, and were damaged thereby. Excluded from the Class are Defendants, the current and Class Period officers and directors of the Company, the members of the immediate families and the legal representatives, affiliates, heirs, successors-in-interest, or assigns of any excluded person, and any entity in which such excluded persons have or had a controlling interest. Also excluded from the Class are those Persons who timely and validly requested exclusion from the Class pursuant to the Notice.
The settlement was approved by the Court on June 7, 2022.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.