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VTRS.US
id: 1555
Viatris ($VTRS) FDA Warning Letter and Hidden Facility Shutdown Case
Investors can submit applications for the lead plaintiff role.
W.D. Pennsylvania
Court2:25-cv-00466
Case number08/08/2024
Class period Start02/26/2025
Class period End06/03/2025
Lead Plaintiff motion deadline- $VTRS investors filed a claim against Viatris for hiding the seriousness of an FDA warning at its India-based Indore manufacturing plant.
- After revealing the warning would slash 2025 revenue by $500 million, $VTRS dropped 15.2% in one day.
Case Details:
Between August 2024 and February 2025, Viatris promoted its global operations while failing to disclose a serious FDA warning letter and import alert at its Indore, India facility. Although the inspection took place in June 2024, the company didn’t inform investors until December, when it confirmed 11 products were banned from U.S. entry. Even then, Viatris described the issue as minor and claimed it would have no impact on 2024 results.
In early 2025, executives continued to downplay the issue, failing to mention that generic Lenalidomide, a key high-margin product, was affected. They also hid that the plant would remain offline well into 2026.
On February 27, 2025, Viatris revealed the FDA’s action would result in a $500 million revenue hit and $385 million drop in operating income for 2025. The stock fell 15.2% in one day, wiping out hundreds of millions in shareholder value.
Based on these events, $VTRS investors filed a claim against Viatris, accusing the company of the following:
- It hid critical regulatory enforcement at a major production site and failed to update investors for months.
- It downplayed the financial impact of the FDA import alert and concealed the loss of high-margin drugs like Lenalidomide.
Considering all the representations, investors believe Viatris misled the market about the scope, timing, and severity of the Indore shutdown to maintain its stock price and delay accountability.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
02/27/2025
Filing date
04/04/2025
Lead Plaintiff Deadline
06/03/2025