SAN FRANCISCO, CA – (February 13, 2017) – The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the securities of Mallinckrodt plc (“Mallinckrodt” or the “Company”) (NYSE: MNK) between November 25, 2014 and January 18, 2017, inclusive (the “Class Period”).
If you purchased or acquired the securities of Mallinckrodt during the Class Period, you may move the Court for appointment as lead plaintiff by no later than March 27, 2017. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Mallinckrodt investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Mallinckrodt Securities Class Litigation
The action alleges that Mallinckrodt, an Irish pharmaceutical company, misrepresented and/or failed to disclose its dependence on Medicare and Medicaid reimbursements for revenues for its therapeutic andrenocorticotropic hormone (“ACTH” or “Acthar”) drugs used to treat infantile spasms and other conditions, and that it maintained a monopoly on Acthar treatments in the U.S., which threatened the sustainability of its reimbursement revenues.
On November 9, 2015, Citron Research (“Citron”) issued a statement on Twitter comparing Mallinckrodt to Valeant Pharmaceuticals, Inc., whose stock price had plummeted 30% after Citron accused Valeant of fraud. On this news, Mallinckrodt’s stock price fell 17%, to close at $58.01 per share.
On November 16, 2016, Citron published a report accusing Mallinckrodt and its Chief Executive Officer (“CEO”) of fraud in connection with the statements the CEO made downplaying the Company’s reliance on Medicare and Medicaid for Acthar revenue. The Citron report revealed that Medicare and Medicaid payments accounted for approximately 61% of the Company’s total Acthar revenue in 2015. On this news, the Company’s stock price fell 18.4%, to close at $55.32 per share.
On November 29, 2016, Mallinckrodt’s CEO disclosed on a conference call that Acthar represented “a significantly greater proportion of [the Company’s] operating income than one-third.” On this news, the Company’s stock price declined 9.1%, to close at $52.42 per share.
On January 18, 2017, the Federal Trade Commission and several states filed a lawsuit and simultaneously entered into a settlement with Mallinckrodt for $100 million for the Company’s anticompetitive conduct with respect to its Acthar pricing. On this news, the Company’s stock price fell 5.85% to close at $46.53 per share.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Seattle, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms “representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity.” Best Lawyers and U.S. News have named Lieff Cabraser as a “Law Firm of the Year” for each year the publications have given this award to law firms.
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Source/Contact for Media Inquiries Only
Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP