- Company Name
- Indivior PLC
- Stock Symbol
- Class Period
- March 10, 2015 to April 9, 2019
- Motion Deadline
- June 22, 2019
- District of New Jersey
The complaint charges Indivior and certain of its officers with violations of the Securities Exchange Act of 1934. Indivior and its subsidiaries develop, manufacture and sell buprenorphine-based prescription drugs for the treatment of opioid dependence.
One of Indivior’s key products is Suboxone Film, a treatment for opioid addiction, which Indivior markets as a safer alternative to other similar drugs, including its own Suboxone Tablets. Although Suboxone Tablets had historically generated hundreds of millions of dollars in annual revenues for the Company, it was set to lose its exclusivity in October 2009, and Company executives feared they would lose revenues to cheaper generics. To head off losses, the Company developed Suboxone Film as a means of maintaining exclusivity in the opioid treatment market.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Indivior’s business and operations. Specifically, defendants failed to disclose that Indivior and its executives were engaged in an illicit nationwide scheme to increase prescriptions of Suboxone Film, obtaining billions of dollars in revenue by deceiving health care providers and health care benefit programs into prescribing the drug, which would result in the Department of Justice (“DOJ”) filing an indictment asserting criminal charges against Indivior in connection with its marketing of Suboxone Film. As a result of this information being concealed from the market, Indivior securities traded at artificially inflated prices during the Class Period, with the price of its American Depositary Receipts (“ADRs”) reaching a high of more $33 per share.
Then on April 9, 2019, the DOJ filed a criminal indictment against the Company in connection with its marketing of Suboxone Film. The charges included one count of conspiracy to commit mail, wire and health care fraud, one count of health care fraud, four counts of mail fraud, and 22 counts of wire fraud. The indictment detailed “an illicit nationwide scheme [by Indivior] to increase prescriptions of Suboxone Film . . . [pursuant to which it] obtained billions of dollars in revenue from [the] prescriptions by deceiving health care providers and health care benefit programs into believing that Suboxone Film [was] safer and less susceptible to diversion and abuse than other, similar drugs.” The indictment also stated that Indivior had established a telephone program that it knew would connect patients to doctors who were prescribing Suboxone Film and/or other opioids “in a careless and clinically unwarranted manner.” According to the indictment, “Indivior’s fraudulent scheme lasted for years and hindered patients’, health care providers’, and health care benefit programs’ accurate assessments regarding opioid-addiction treatment in order to increase the [C]ompany’s profits.” On this news, the price of Indivior ADRs fell $4.48 per share, or 66%, to close at $2.30 per share on April 10, 2019.