Robbins Arroyo LLP: Endo International plc (ENDP) Misled Shareholders According to a Recently Filed Class Action
June 2, 2016 (San Diego, CA & Dublin, Ireland) – Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Endo International plc (NASDAQGS: ENDP) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Endo securities between March 2, 2015 and May 6, 2016, for alleged violations of the Securities Exchange Act of 1934 by Endo’s officers and directors. Endo develops, manufactures, and distributes pharmaceutical products and devices worldwide.
Endo Accused of Relying on Unsustainable Business Contracts
According to the complaint, throughout the class period, Endo stated in filings with the U.S. Securities and Exchange Commission (“SEC”) that net sales for its U.S. Branded Pharmaceuticals segment increased, which was primarily attributable to increased revenues from Frova, the company’s migraine therapy. The company’s filings with the SEC contained signed certifications stating that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. In its 2015 Earnings Release, Endo provided revenue guidance, estimating total revenues between $4.32 billion and $4.52 billion for the year ended December 31, 2016. At a conference on March 17, 2016, Endo announced weaker than expected revenue guidance for the first quarter of 2016, but reiterated the revenue guidance from the 2015 Earnings Release.
The complaint alleges that Endo officials failed to disclose that the company’s contracts with pharmacy benefit managers (“PBMs”) regarding Frova included questionable incentives intended to increase sales revenues and that consequently, Endo’s revenues and revenue projections relied in part on unsustainable arrangements. On May 5, 2016, Endo announced poor financial results, significantly cut its 2016 guidance, and revealed that the President of the company’s U.S Branded Pharmaceuticals segment was resigning. On May 6, 2016, Endo announced that it received a Civil Investigative Demand from the U.S. Attorney’s Office for the Southern District of New York, which requested information regarding contracts with PBMs regarding Frova. In two days of trading, Endo’s stock price fell $11.32 per share, or 42.57%, to close at $15.27 per share on May 9, 2016.
Endo 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.
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