Robbins Arroyo LLP: Depomed, Inc. (DEPO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Depomed, Inc. (NasdaqGS: DEPO). The complaint is brought on behalf of all purchasers of Depomed securities between February 26, 2015 and August 7, 2017, for alleged violations of the Securities Exchange Act of 1934 by Depomed’s officers and directors. Depomed, a specialty pharmaceutical company, engages in the development, sale, and licensing of products for pain and other central nervous system conditions in the United States.
Depomed Accused of Engaging in Questionable Opioid Sales Practices
According to the complaint, Depomed acknowledged in its public filings that the company may incur significant liability if it is found to have promoted the “off-label” use of drugs and that any failure to comply with applicable statutes or regulations could adversely affect the business. Depomed officials failed to inform investors that the company was engaging in questionable practices in connection with the sales and marketing of its opioid products, which would likely subject the company to increased legal and regulatory scrutiny when discovered. On August 7, 2017, Depomed revealed that the company recently received a request for information from the ranking minority member of the U.S. Senate Committee on Homeland Security and Governmental Affairs related to the promotion of opioids. Depomed further disclosed that it had received subpoenas related to opioid sales and marketing from the Office of the Attorney General of Maryland and the U.S. Department of Justice. On this news, Depomed’s stock fell $3.09 per share, or over 33%, to close at $6.15 per share on August 8, 2017.
Depomed Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, or you can complete the form below and we will contact you directly.