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Perrigo Company plc

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Case Summary

Company Name
Perrigo Company plc
Stock Symbol
PRGO
Class Period
November 8, 2018 to December 20, 2018
Motion Deadline
March 4, 2019
Court
Southern District of New York

The complaint charges Perrigo and certain of its officers with violations of the Securities Exchange Act of 1934.  Perrigo is a global healthcare supplier that develops, manufactures and distributes healthcare products.

The complaint alleges that defendants failed to disclose material details associated with an audit finding letter Perrigo had received from Irish tax authorities on October 31, 2018 asserting “that IP sales transactions, . . . including the sale of Tysabri®, were not part of the trade of Elan Pharma and therefore should have been treated as chargeable gains subject to an effective 33% tax rate, rather than the 12.5% tax rate applicable to trading income.”  As a result of these material details being withheld from the market, the price of Perrigo common stock was artificially inflated to more than $65 per share during the Class Period.

Perrigo did disclosed the existence of the audit finding letter to investors in a Form 8-K filing on November 8, 2018, which stated that it had received the letter, but that “the amount of adjustments, if any, that may ultimately be asserted by the Irish Revenue cannot be quantified at this stage.” However, it was not until December 21, 2018 that Perrigo disclosed the material details of the audit finding letter, including “that IP sales transactions, . . . including the sale of Tysabri®, were not part of the trade of Elan Pharma and therefore should have been treated as chargeable gains subject to an effective 33% tax rate, rather than the 12.5% tax rate applicable to trading income.”  On this disclosure, the price of Perrigo stock fell more than $15 per share, or nearly 30%.

Class Period: November 8, 2018 - December 20, 2018
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