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The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Lannett Company, Inc. Levi & Korsinsky, LLP announces that a LCI class action lawsuit has been filed on behalf of investors who purchased Lannett Company, Inc. (LCI) securities between February 7, 2018 and August 17, 2018. For more on the LCI Lawsuit please contact us today.
According to the Lannett Company, Inc. lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:(i) Lannett faced a substantial risk of the loss of its exclusivity agreement with Jerome Stevens Pharmaceuticals; (ii) accordingly, Lannett’s reported revenues were unsustainable; and (iii) as a result, Lannett’s public statements were materially false and misleading at all relevant times.
If you suffered a loss in Lannett Company, Inc. you have until October 26, 2018 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff. You may choose to be an absent class member.
The Company, also known as Lannett, is a Delaware corporation that develops, produces, packages, markets, and distributes solid oral and extended release (tablets and capsules), topical, nasal, and oral solution finished dosage forms of medications that treat a variety of therapeutic conditions. Most notably, under the Jerome Stevens Distribution Agreement, the Company distributes some of these products that are produced by third parties. Through its subsidiary Cody Laboratories, Inc. (“Cody Labs”), the Company also produces active medicinal ingredients, an advantage of vertical integration.
The lawsuit claims, in part, that Lannett Company made just such a materially false assertion in its application to create and sell the cocaine-based anesthetic Numbrino. “Lannett’s application specified that the medication would be produced in a facility in Cody, and the application contained information relevant to that facility” (e.g., data related to the Exhibit Batches that were manufactured in the Cody facility).
Lannett Company, Inc. is a Delaware corporation. Some of these goods are produced by third parties, yet the company distributes them. Through its subsidiary Cody Labs, the Company also produces active medicinal components, a benefit of vertical integration. The Company is also looking for collaborations, contracts for research, and internal growth for the development and manufacturing of additional dosage forms, such as ophthalmic, nasal, patch, foam, buccal, sublingual, soft gel, injectable, and oral dosages.
Assertions of wrongdoing or liability made against the defendants in the derivative action are all denied, regardless of how they relate to or arise from the events, behavior, words, acts, or omissions in question. Defendants additionally claim that they always behaved in the best interests of Lannett and its stockholders, in good faith, and in a way that was reasonable for them to think to do so.
The Derivative Action is brought derivatively on behalf of nominal defendant Lannett Company and alleges that the Individual Defendants violated federal securities laws and breached their fiduciary duties by causing the Company to engage in anti-competitive conduct, by making a number of materially false and misleading statements to the investing public, either directly or through the Company.
The weighted average number of shares outstanding during the period, which includes additional shares that would have been outstanding related to potentially dilutive instruments, is used to calculate the diluted earnings per common share attributable to Lannett Company, Inc. These potentially dilutive securities generally consist of outstanding warrants, restricted stock that has not yet vested, and stock options. Securities that dilute the market are not included in the computation. Due to the fact that incorporating such securities would have an anti-dilutive effect, diluted shares are also removed from calculations during periods of net loss.
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