Robbins Arroyo LLP: Concordia International Corp. (CXRX) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Concordia International Corp. (NASDAQGS: CXRX) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Concordia securities between November 12, 2015 and August 12, 2016, for alleged violations of the Securities Exchange Act of 1934 by Concordia’s officers and directors. Concordia, a specialty pharmaceutical company, owns a portfolio of branded and generic prescription products in the United States and internationally.
Concordia Accused of Misleading Investors About Its Financial Results
According to the complaint, throughout the class period, Concordia issued several press releases announcing positive financial results while citing the growing strength and diversity of its business. Concordia stated, “Our legacy business continues to perform strongly quarter over quarter. This is a testament to our business model as well as our commitment to delivering value to our shareholders.” The company further reported that its North America segment’s revenue amounted to $85.9 million for the first quarter of 2016, which increased by $54.9 million or 177% compared to the corresponding period in 2015. The company also reaffirmed guidance for 2016, including revenues of $1,020 million to $1,060 million. However, the complaint alleges that Concordia officials failed to disclose that the company was experiencing a substantial increase in market competition against the company’s products and that as a result, the company’s financial results would suffer and the company would be forced to suspend its dividend.
On August 12, 2016, Concordia announced in a press release that it was lowering its 2016 guidance “to reflect the impact of unexpected competition on several products in our North America segment, and current foreign currency exchange rates.” The company also announced that its Chief Financial Officer was leaving the company and that Concordia’s Board unanimously agreed to suspend the Company’s $0.075 quarterly dividend. On this news, Concordia stock fell $6.33 per share, or 38%, to close at $10.03 per share on August 12, 2016.
Concordia Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
Send This Post