- Company Name
- Teligent, Inc.
- Stock Symbol
- Class Period
- May 2, 2017 to November 7, 2017
- Motion Deadline
- June 14, 2019
- Southern District of New York
The complaint charges Teligent and its Chief Executive Officer with violations of the Securities Exchange Act of 1934. Teligent researches, develops, produces, supplies, and sells generic pharmaceutical products.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information about Teligent’s business and operations, including information regarding product non-conformities in research and development and non-compliance with applicable regulations. As a result of this information being withheld from the market, the price of Teligent stock was artificially inflated during the Class Period to more than $9 per share.
Then on November 6, 2017, after the market closed, Teligent announced disappointing third quarter 2017 financial results. Total revenue fell to $13.7 million compared to $18.4 million the previous quarter, a 25.5% drop, and to $16.2 million in the third quarter of 2016, a 15.4% drop. Teligent’s press release quoted defendant Jason Grenfell-Gardner, the Company’s CEO, who attributed the drop in revenue to FDA approval delays and competition, stating: “‘This third quarter has been challenging for Teligent. These results and our revised outlook for the remainder of the year are a result of the knock-on effect of ANDA approval delays and increased competition in one of our largest products . . . .’” On the earnings call following the release of Teligent’s third quarter results, Grenfell-Gardner stated that the Company “faced manufacturing challenges,” including issues relating to “a high-volume product that was being provided to [the Company] with particles that had the potential to adulterate [the] finished goods.” According to Grenfell-Gardner, while this issue had been resolved, the “engineering expenses related to the fix contributed to lower-than-anticipated margins in the quarter.” On this news, the price of Teligent stock fell $2.29 per share, or more than 43%, to close at $2.96 per share on November 7, 2017.