Perrigo ($PRGO) Infant Formula Integration Charges, Forecast Cuts, and Stock Drop Case

S.D. New York

Court

1:25-cv-09596

Case number

02/27/2023

Class period Start

11/04/2025

Class period End

01/16/2026

Lead Plaintiff motion deadline

$PRGO investors filed a claim against Perrigo Company for allegedly misrepresenting the financial stability and operational readiness of its infant formula business following the acquisition of Nestlé’s Gateway plant and Good Start® brand.
After a series of disclosures revealing facility issues, production losses, and a strategic review of the segment, $PRGO dropped 54% from $33.48 on February 26, 2024, to $15.10 on November 5, 2025.
$PRGO investors can join this case to be notified about potential recovery.
Case Details:

On November 1, 2022, Perrigo acquired Nestlé’s Gateway infant formula plant in Wisconsin and the U.S. and Canadian rights to the Good Start® brand for $170 million. The company stated the deal would enhance its infant nutrition offerings and support long-term growth.

On February 27, 2024, Perrigo reported its fiscal year 2023 results, disclosing acquisition-related integration costs, including $35–$45 million in remediation expenses to address production and facility issues at the newly acquired infant formula business. The company also reported a 50% decline in earnings per share year-over-year, attributing the drop to these remediation actions. Despite this, Perrigo expressed confidence that the business would stabilize and return to growth later in the year. On this news, $PRGO fell 15.1%, closing at $27.30.

On May 7, 2024, Perrigo released its Q1 2024 results, revealing a 34.5% decline in infant formula net sales and lower margins, though it again stated that major plant resets were completed and full-year remediation costs remained unchanged.

Then on August 6, 2025, Perrigo reported a $11 million inventory loss tied to a production issue in the infant formula segment. While the company maintained that recovery was underway, shares dropped 11.3%, closing at $23.61.

Finally, on November 5, 2025, Perrigo disclosed it was launching a strategic review of the infant formula business and reevaluating a planned $240 million investment. The company also slashed full-year 2025 sales and earnings guidance, citing weak industry dynamics. That day, $PRGO fell 25.2% to $15.10, its lowest level since before the acquisition.

Based on these events, $PRGO investors filed a claim against Perrigo, alleging the company:
It misrepresented the readiness and financial impact of its infant formula acquisition.
It failed to disclose known operational issues and the extent of required remediation costs.
It reaffirmed optimistic forecasts despite worsening performance and internal challenges.
Investors argue Perrigo presented an overly confident outlook while facing significant integration and production risks, which led to losses once the full impact became public.

Case Type

US Securities Class Action

Case Status

Lead Plaintiff Appointment

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

11/08/2023

Filing date

11/14/2025

Lead Plaintiff Deadline

01/16/2026

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