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LCI.US
id: 1466

Lannett (LCI) Investor Settlement

Eligible claimants can submit their claims for compensation.
$5,750,000
Cash Settlement
E.D. Pennsylvania
Court
2:16-cv-05932
Case number
07/15/2014
Class period Start
01/30/2018
Class period End
04/02/2026
Claim deadline
Lannett has agreed to a settlement with $LCI investors to resolve claims of engaging in price-fixing schemes.

Overview


In 2017, Lannett was accused of participating in a price-fixing scheme for generic drugs, artificially inflating prices while failing to disclose its violations of antitrust laws between 2013 and 2017. When this information became public, $LCI dropped 14%, causing significant financial losses for investors. On October 31, 2017, investors filed a lawsuit against the company.


Timeline

  • July 8, 2014 – The New York Times reported suspicious price hikes on Lannett’s Digoxin.
  • July 16, 2014 – Lannett received a subpoena from the Connecticut Attorney General investigating price-fixing.
  • December 8, 2014 – Lannett revealed a federal investigation into possible antitrust violations.
  • October 31, 2017 – A lawsuit filed by 45 states accused Lannett of colluding with competitors to inflate drug prices, causing $LCI to drop 14% and leading to an investor lawsuit.
  • August 17, 2020 – Lannett reached a settlement with investors to resolve these claims.

Background


In 2017, Lannett was accused of participating in a price-fixing scheme for generic drugs such as Doxycycline Monohydrate, Digoxin and Ursodiol over the previous five years. Internal communications uncovered during state and federal investigations revealed that Lannett executives coordinated price hikes with competitors, shared confidential pricing data, and allocated market shares among other manufacturers.

Despite these investigations, Lannett continued to assure investors that its financial success was due to "market forces" rather than collusion. However, in October 2017, 45 states filed an expanded lawsuit, exposing Lannett’s role in the scheme. This caused a 14% stock drop, leading investors to file their own lawsuit over misleading financial statements.


What Can Investors Expect Now?


Lannett has reach a settlement with $LCI investors to resolve claims of engaging in price-fixing schemes.

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 below.
Case Type
US Securities Class Action
Case Status
Accepting Claims
Alleged Offence
Financial Misrepresentation, 
Failure to Disclose, 
Price manipulation
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.16
Filing date
07/15/2014
Lead Plaintiff Deadline
01/30/2018
Plaintiffs
JOHN UTESCH
Attorneys
Pomerantz LLP (New York)
Defendants
ARTHUR P. BEDROSIAN; MARTIN P. GALVAN
Administrator
A.B. Data Ltd
Settlement agreement date
2025-10-17
Court hearing date
04/16/2026
Exclusion deadline
03/13/2026
Objection deadline
03/13/2026
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
How much will my payment be?
How to get your payout?
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