Danaher Corporation ($DHR) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.

D. District Columbia

Court

1:23-cv-02055

Case number

01/27/2022

Class period Start

10/23/2023

Class period End

Danaher Corporation has reached a tentative settlement to resolve investor claims tied to its bioprocessing business, COVID-related demand assumptions, and repeated guidance cuts.

Outline:

On January 27 and March 8, 2022, Danaher said bioprocessing could keep growing even as COVID demand eased. By October 20, 2022, January 24, 2023, April 25, 2023, and July 25, 2023, it had repeatedly cut that outlook. Investors say large customers were using stockpiled inventory while smaller biotech customers delayed or canceled projects as funding tightened. The case has now moved to a tentative settlement.

Timeline:
January 27, 2022: Danaher said its bioprocessing business should deliver high-single-digit growth in 2022.
July 21, 2022: Danaher cut its 2022 COVID-related bioprocessing revenue outlook to about $1 billion.
September 15, 2022: Danaher formed a new Biotechnology reporting segment around Cytiva and Pall and continued promoting bioprocessing as a long-term growth.
October 20, 2022: Danaher lowered its expected 2022 COVID-related bioprocessing revenue again to about $800 million.
January 24, 2023: Danaher cut its expected 2023 COVID-related bioprocessing revenue to about $150 million.
April 25, 2023: Danaher reduced its 2023 base business outlook to mid-single-digit growth and said bioprocessing would remain largely in line with weak first-quarter levels.
May 10, 2023: Danaher said it expected the same flat activity levels in bioprocessing for the rest of 2023.
March 2026: Danaher agrees to settle to resolve investor lawsuit
Background:

Danaher benefited heavily from the COVID-19 period through its diagnostics and life sciences businesses. By early 2022, investors were closely focused on its bioprocessing operations, which had grown into a multibillion-dollar business supplying equipment and components used to develop and manufacture vaccines, therapeutics, and other biologic drugs.

Investors say Danaher kept telling the market that demand tied to COVID vaccines and therapeutics would remain durable and that the larger non-COVID bioprocessing business would continue providing strong growth. But as COVID shifted toward an endemic phase, customers allegedly pulled back from COVID-related programs and demand began to weaken.

Investors also say large pharmaceutical customers kept receiving equipment ordered during the pandemic and then relied on that stockpiled inventory instead of placing as many new orders. At the same time, smaller biotech companies were allegedly hit by tighter funding conditions, forcing them to delay projects, cancel work, and conserve cash.

Even so, investors say Danaher continued issuing aggressive forecasts for 2022 and 2023 while downplaying inventory buildup and order weakness. Over time, the company repeatedly reduced its outlook, including lowering expected COVID-related bioprocessing revenue from about $2 billion in 2022 guidance to about $800 million, and then cutting 2023 expectations again as conditions worsened.

Those revisions were followed by notable stock declines, including nearly 6% on October 20, 2022, a cumulative 5.2% drop across January 24 and 25, 2023, and a drop of more than 9% on April 25, 2023. The case has now moved to a tentative settlement.

What Can Investors Expect Now?

Danaher Corporation has reached a tentative settlement to resolve investor claims tied to its bioprocessing business, COVID-related demand assumptions, and repeated guidance cuts.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.

Case Type

US Securities Class Action

Case Status

Tentative Settlement

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Filing date

07/17/2023

Lead Plaintiff Deadline

09/15/2023

Plaintiffs

Brenda Hawkins

Attorneys

Cohen Milstein Sellers & Toll PLLC (Washington, DC), Pomerantz LLP (New York, NY)

Defendants

Rainer M. Blair, Matt McGrew

Trades matching type

FIFO

Trusted by industry leaders

Endorsed by top professionals who trust our innovative solutions to drive impactful results.