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Oklahoma City, OK (February 25, 2019) – On February 24, 2019, a securities class action lawsuit was filed in the United States District Court for the Central District of California 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 February 26, 2018 through February 21, 2019.  The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) Diplomat Pharmacy had downplayed its success in integrating and growing its PBM business, which included LDI Integrated and National Pharmaceutical, two companies Diplomat had acquired in late 2017; (2) consequently, Diplomat Pharmacy would need to record a non-cash impairment charge upwards of approximately $630 million relating to its PBM business and these 2017 acquisitions; (3) due to the foregoing, Diplomat Pharmacy would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior; and (4) as a result, Defendants’ statements about Diplomat Pharmacy’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. 

On February 22, 2019, Diplomat announced it would be postponing the release of its fourth quarter and full-year 2018 financial results because it will need to record a non-cash impairment charge related to its PBM business. More specifically, Diplomat disclosed the “charge is expected to be equal to a significant portion of the PBM’s Goodwill and Definite-lived intangible assets, which total approximately $630 million as of December 31, 2018, prior to impairment charges.” Diplomat also withdrew its preliminary 2019 full-year outlook provided in January. On this news, shares of Diplomat fell $7.59 per share, or over 56%, to close at $5.87 per share on February 22, 2019.

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 Thursday, April 25, 2019 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.

If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact:  Robin Hester at rkh@federmanlaw.com