Robbins Arroyo LLP: Taro Pharmaceutical Industries Ltd. (TARO) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Taro Pharmaceutical Industries Ltd. (NYSE: TARO) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of Taro securities between July 3, 2014 and September 9, 2016, for alleged violations of the Securities Exchange Act of 1934 by Taro’s officers and directors. Taro, a science-based pharmaceutical company, engages in the development, manufacture, and marketing of pharmaceutical products in the United States, Canada, Israel, and internationally. One of the company’s key product groups is Clobetasol, a generic drug used to treat skin conditions including eczema, dermatitis, psoriasis, and vitiligo.
Taro Accused of Colluding With Its Competitors
According to the complaint, throughout the class period, Taro submitted several filings with the U.S. Securities and Exchange Commission, certifying that the financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. However, the complaint alleges that Taro officials failed to disclose that: (1) Taro colluded with other pharmaceutical companies to keep the price of generic products artificially high since 2014; (2) this conduct violated federal antitrust laws; (3) in turn, Taro’s revenues during the class period were the result of illegal conduct; and (4) that, as a result, the company’s public statements were misleading.
On September 9, 2016, Taro announced that its subsidiary, Taro USA, received a subpoena from the U.S. Department of Justice, Antitrust Division, seeking documents relating to corporate and employee records, generic pharmaceutical products and pricing, and communications with competitors and others regarding the sale of generic pharmaceutical products, among other things. On this news, Taro stock fell $4.94 per share, or nearly 4%, to close at $119.42 per share on September 23, 2016. On October 17, 2016, an employee health and welfare benefit fund filed an antitrust class action lawsuit against Taro and several other pharmaceutical companies alleging that they engaged in the price-fixing of Clobetasol since 2014 in violation of the U.S. antitrust laws.
Taro 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