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PRGO.US
id: 1179

Perrigo (PRGO) $97 Million Investor Settlement Over Misguiding Growth Prospects

The settlement funds have been distributed to claimants.
$97,000,000
Cash Settlement
D. New Jersey
Court
1:16-cv-02805
Case number
04/21/2015
Class period Start
05/03/2017
Class period End
08/26/2024
Claim deadline

Perrigo (PRGO) agreed to settle $97M with investors to end claims over Mylan's purchase offer and the financial issues.

Case Details:

On April 8, 2015, Mylan offered to buy Perrigo. Investors reacted positively, pushing the $PRGO price up.

On April 21, 2015, Perrigo rejected Mylan's offer claiming undervaluation. Perrigo's campaign convinced shareholders to decline on November 13, 2015.

  • On February 18, 2016, Perrigo reported lower Q4 2015 results and slashed 2016 earnings guidance.

  • They also revealed a sudden need to restructure parts of the Omega business, leading to a $185M impairment charge related to Omega's assets.

On April 22, 2016, Reuters reported Perrigo's CEO would join Valeant Pharmaceuticals. Perrigo confirmed the CEO's resignation.

Then, the Company slashed its 2016 earnings guidance and cited increased competition and underperformance in Omega.

On May 12, 2016, Perrigo reported a first-quarter net loss of $0.93 per share (revised to $2.34 per share) due to a $467M impairment charge related to the Omega acquisition.

Perrigo has now decided to end all allegations related to the Mylan offer and to the financial issues by paying a $97M settlement to investors.

Case Type
US Securities Class Action
Case Status
Disbursed
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.693
Filing date
05/18/2016
Plaintiffs
Roofers' Pension Fund
Attorneys
Bronstein, Gewirtz & Grossman, LLC, Lowenstein Sandler PC, Pomerantz LLP
Defendants
Joseph C. Papa, Judy Brown, Laurie Brlas, Gary M. Cohen, Marc Coucke, Jacqualyn A. Fouse, Ellen R. Hoffing, Michael R. Jandernoa, Gerald K. Kunkle, Jr., Herman Morris, Jr.
Judge
Madeline C. Arleo
Administrator
JND Legal Administration
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who purchased or otherwise acquired $PRGO common stock from April 21, 2015, to May 2, 2017, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.69 per share. Typically only 25% of investors file claims, receiving higher payouts.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout.

  2. Audit the claim to make sure you get the maximum payout.

  3. File a claim with the settlement administrator.

  4. Interact with the settlement administrator to resolve emerging issues.

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.