Robbins Arroyo LLP: Impax Laboratories, Inc. (IPXL) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Impax Laboratories, Inc. (NASDAQGS: IPXL) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Impax securities between February 25, 2014 and November 3, 2016, for alleged violations of the Securities Exchange Act of 1934 by Impax’s officers and directors. Impax, a specialty pharmaceutical company, develops, manufactures, and markets bioequivalent pharmaceutical products.
Impax Accused of Violating Antitrust Laws
According to the complaint, Impax submitted several filings with the U.S. Securities and Exchange Commission, attesting to the accuracy of financial reporting, the disclosure of any material changes to the company’s internal control over financial reporting, and the disclosure of all fraud. In its filings, Impax noted that the principal competitive factors in the generic pharmaceutical market are: price, product quality, and the ability to identify and market niche products, among other things. The complaint alleges that Impax officials failed to disclose that: (1) Impax had engaged in conduct that would cause the antitrust division of the Department of Justice (“DOJ”) and the Connecticut Attorney General to conduct extensive investigations of possible collusion of generic drug pricing; (2) Impax received two subpoenas which sought documents relating to violations of the federal and state antitrust laws; (3) the DOJ investigation was likely to result in criminal charges against Impax for collusion of generic drug pricing; and (4) Impax lacked effective internal controls over financial reporting.
On November 3, 2016, Bloomberg published an article which discussed the DOJ’s investigation about suspected price collusion by several pharmaceutical companies, including Impax. The article stated that “it’s against the law for competitors to agree to set prices or coordinate on discounts, production quotas or fees that affect prices” and that charges could extend to high-level Impax executives. On this news, Impax’s stock fell $4.00 per share, or over 19.5%, to close at $16.50 per share on November 3, 2016.
Impax 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