NEW YORK, Jan. 04, 2024 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Eagle Pharmaceuticals, Inc. (“Eagle” or the “Company”) (NASDAQ: EGRX) securities during the period from August 8, 2023 through November 28, 2023, inclusive (the “Class Period”). Investors have until February 9, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On November 9, 2023, Eagle announced that it would not release its third quarter 2023 results on time because the Company “requires more time to review potential adjustments relating to the reporting of sales of PEMFEXY prior to filing its Form 10-Q.” The Company also disclosed it “expects to revise its previously disclosed 2023 full year guidance downward.” On this news, the price of Eagle shares declined by $4.16 per share, or approximately 30.4%, from $13.70 per share to close at $9.54 on November 9, 2023.
After the market closed on November 9, 2023, the Company also disclosed that it was reviewing “potential adjustments to reserves for returns and price adjustments of approximately $15.0 million to $20.0 million.” These amounts relate “to returns and a price adjustment for PEMFEXY stemming from slower-than-anticipated pull-through from a wholesale customer predominantly due to expiry of inventory.” On this news, the price of Eagle shares declined by $0.27 per share, or approximately 2.83%, from $9.54 per share to close at $9.27 on November 10, 2023.
On November 29, 2023, Eagle disclosed that Scott Tarriff, the Company’s President and Chief Executive Officer resigned. The Company’s board of directors accepted the resignation “[a]fter consideration of various alternatives, including termination with or without cause.” On this news, the price of Eagle shares declined by $2.55, or approximately 31%, from $8.23 per share to close at $5.68 on November 29, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company was experiencing slower-than-anticipated pull-though from a wholesale customer predominantly due to expiry of inventory; (ii) as a result, Eagle had overstated its revenue; (iii) the Company did not have effective internal controls and procedures over financial reporting as to PEMFEXY sales; and (iv) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Eagle securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
