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Viatris, Inc. Class Action Lawsuit - VTRS

Company Name
Viatris, Inc.
Stock Symbol
VTRS
Court
Western District of Pennsylvania

Case Summary

The Viatris class action lawsuit charges Viatris, Inc. (NASDAQ: VTRS) as well as certain of its top executives and directors with violations of the Securities Act of 1933.  The Viatris class action lawsuit seeks to represent former Mylan N.V. shareholders who acquired Viatris common stock shares pursuant to the S-4 registration statement and related 424B3 prospectus (collectively, the “Registration Statement”) issued in connection with a November 2020 transaction by which Pfizer Inc.’s subsidiary Upjohn Inc., was spun-off and merged with Mylan, to form the company now known as Viatris.  The Viatris class action lawsuit, captioned Patel v. Viatris, Inc., No. 21-cv-01769, is pending in the Western District of Pennsylvania.

If you are a Viatris investor who suffered a loss and would like to learn more, provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.

CASE ALLEGATIONS:  In November 2020, in connection with the above-referenced merger, Viatris (then known as Upjohn) issued approximately 560 million new shares of Viatris common stock to former Mylan shareholders in exchange for their Mylan shares.  Each of these new shares of Viatris common stock was issued, solicited, and sold pursuant to the Registration Statement, at a market price of approximately $16.30 per share.

The Viatris class action lawsuit alleges that the Registration Statement: (i) overstated Viatris’s financial condition, ability to pay dividends, and dividend payout policy; (ii) failed to disclose the increasing severity and negative internal impact Viatris was already suffering in China, a purported growth market, from the Chinese government’s mandated price cuts under a national policy of volume-based procurements; and (iii) failed to disclose the severe and negative impact Viatris was already suffering due to generic competitors to Lyrica in Japan.

As the truth of defendants’ misrepresentations and omissions emerged, the price of Viatris shares suffered sharp declines.  For example, on February 22, 2021, Viatris announced disappointing fiscal results and guidance, including a far lower projected dividend of approximately $540 million (approximately half than that touted in the Registration Statement) and revenue down to between $17.2 billion and $17.8 billion, a substantial miss well below the $18.46 billion consensus, admittedly negatively impacted by pressure from both volume-based procurements in China and generic competitors to Lyrica in Japan.  In response, many research analysts expressed dire concern.  According to Cowen analysts, Viatris’s business model looked “broken,” for it now appeared that “the Upjohn business w[ould] likely compound [Mylan's problems]” and that Viatris’s 2021 guidance “was significantly below their original expectations” which “highlight[ed] the rapid and difficult underlying deterioration in both [the Mylan and Upjohn] businesses.”  On this news, Viatris’s share price fell by approximately 15%, damaging investors.

By the commencement of the Viatris class action lawsuit, Viatris shares traded as low as $12.97 per share, amounting to an over $1 billion decline from the offering price.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors that year, more than double the amount recovered by any other securities plaintiffs’ firm.

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