Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against Diplomat Pharmacy, Inc.
Oklahoma City, OK (November 14, 2016) – On November 10, 2016, a securities class action lawsuit was filed in the United States District Court for the Eastern District of Michigan against Diplomat Pharmacy, Inc. (NYSE: DPLO). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is October 9, 2014 through November 2, 2016. More specifically, this litigation was filed because the Company made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked adequate internal controls over its financial reporting and as a result the Company could not adequately calculate DIR fees; (2) the Company’s hepatitis C segment was not performing as previously disclosed to investors; (3) the Company overstated its full-year 2016 guidance; and (4) as a result of the foregoing, the Company’s statements about its business, operations, and prospects, were false and misleading and/or lacked a reasonable basis at all relevant times.
After the market closed on November 2, 2016, the Company reported third quarter 2016 results that fell below investors’ expectations. The Company also lowered full year 2016 guidance, with the CEO and Chairman commenting, “We are disappointed with our third quarter results, which were significantly impacted by the softness in the hepatitis C business nationwide, as well as by DIR fees. The methodology and transparency around how PBMs are applying these DIR fees changed materially in 2016, and while we cannot reverse the impact they had on this quarter, we are working with our partners in the specialty pharmacy industry and with legislators to achieve an amicable solution to this problem.”
On this news, the Company’s stock fell $9.43 per share, to close at $12.95 per share on November 3, 2016.
Plaintiff seeks to recover damages on behalf of all Diplomat Pharmacy, Inc. shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, January 9, 2017 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
To join this class action, click here to obtain an investor certification. Once complete, please email this form to firstname.lastname@example.org, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.
Posted on Mon, November 14, 2016
by Robin Hester filed under