Robbins Arroyo LLP: Novo Nordisk A/S (NVO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Novo Nordisk A/S (NYSE: NVO) in the U.S. District Court for the District of New Jersey. The complaint is brought on behalf of all purchasers of Novo Nordisk American Depositary Receipts (“ADR”) between February 5, 2015 and October 27, 2016, for alleged violations of the Securities Exchange Act of 1934 by Novo Nordisk’s officers and directors. Novo Nordisk, a healthcare company, engages in the discovery, development, manufacture, and marketing of pharmaceutical products worldwide.
Novo Nordisk Accused of Misrepresenting the Company’s Business Prospects
According to the complaint, Novo Nordisk officials touted the company’s ability to maintain sustainable revenue, stating that the company had “a very long-term strategy and excellent execution,” and that it would be able to achieve a “long-term target for operating profit growth at 10%, underlying [the Company's] confidence in the growth outlook of the company.” Novo Nordisk further stated that there would be increasing demand for its products in the future, predicting sales growth for 2016 to be 5-9%. Further, Novo Nordisk reported impressive revenue, operating profit growth and sales growth, informing investors that the company would achieve 10% operating profit growth over the long-term. However, the complaint alleges that Novo Nordisk failed to inform investors of the company’s declining financial position.
On September 1, 2016, Novo Nordisk announced that its long-serving Chief Executive Officer would unexpectedly retire by year-end 2016, three years before his contract was set to expire in 2019. Then, on September 29, 2016, the company announced that it would be laying off approximately 1,000 of its employees due to increasing competition and resistance to high prices for diabetes products in the United States. On October 28, 2016, Novo Nordisk announced that it had received a Civil Investigative Demand from the U.S. Attorney’s Office for the Southern District of New York seeking information related to the company’s business relationships with pharmacy benefit managers concerning certain of its insulin products. On this news, the price of Novo Nordisk ADRs fell over 15% to close at $35.54 per share on October 31, 2016.
Novo Nordisk 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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