Settlement of Fleming v. Impax Laboratories Inc., et al.
The parties have reached a settlement of this action, pending in the United States District Court for the Northern District of California, Oakland Division. The settlement provides for the payment of $33 million for the benefit of eligible Class Members. Lead Plaintiff New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund and proposed class representative Sheet Metal Workers’ Pension Plan of Southern California, Arizona and Nevada alleged that Defendants violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 by concealing that the profits from two generic drugs had been inflated by price-fixing arrangements with competitors, and making false statements about and concealing the impact of competition and price erosion on sales of certain key products in Impax Laboratories Inc.’s (“Impax” or the “Company”) generic drug portfolio. Lead Plaintiff further alleged that these misleading representations artificially inflated Impax’s stock price, until the relevant truth was revealed and the Company’s stock price declined.
The Class consists of all Persons that purchased or acquired Impax common stock or 2% Convertible Senior Notes between February 20, 2014 and August 9, 2016, inclusive. Excluded from the Class are: (i) Defendants; (ii) members of the immediate families of the Individual Defendants; (iii) Impax’s subsidiaries; (iv) the officers and directors of Impax during the Class Period; (v) any entity in which any Defendant has a controlling interest; and (vi) the legal representatives, heirs, successors and assigns of any such excluded person or entity. Also excluded from the Class will be any Person who timely and validly seeks exclusion from the Class.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.