If you invested in Assertio and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »
03/09/2023 - 11/08/2023
LEAD PLAINTIFF DEADLINE
On Jan. 5, 2024, Assertio’s stock plummeted after it announced that its President and CEO Daniel Peisert was leaving his post with the Company. Notably, Assertio characterized Peisert’s separation from the company as an “involuntary termination.”
Just days after Peisert’s termination, investors launched a securities class action suit against Assertio, Peisert and other executives. The case is brought on behalf of investors who purchased Assertio securities between Mar. 9, 2023 and Nov. 8, 2023, inclusive. The litigation, however, does not presently link Peisert’s departure and the corresponding stock drop with the alleged fraud.
Rather, the complaint there alleges Assertio made false and misleading statements and failed to disclose that: (1) its reliance on Indocin products to boost its net income was unsustainable given the risk of generic products competition; (2) the Spectrum Acquisition was less valuable than Assertio had represented to investors; and (3) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on the company’s profitability.
The truth began to emerge on Aug. 3, 2023, when the FDA granted a 180-day Competitive Generic Therapies exclusivity to Zydus Lifesciences (a company competitor) to manufacture and market 50mg indomethacin suppositories, a generic version of Assertio’s Indocin suppositories. In addition, Assertio withdrew its 2023 financial outlook. On this news, Assertio’s stock price fell 45%.
Then, on Nov. 8, 2023, Assertio announced disastrous Q3 2023 financial results. The company reported Q3 revenues of just $35.63 million (or nearly 30% below analysts’ estimates) and non-GAAP EPS of just $0.01 (or about 90% below analysts’ estimates), blaming the results on poor Indocin and ROLVEDONä sales.
FREQUENTLY ASKED QUESTIONS ABOUT THE CASE
- What is the ASRT securities class-action case about?
This lawsuit on behalf of investors nationwide alleges that Assertio made false and misleading statements and failed to disclose that: (1) its reliance on Indocin products to boost its net income was unsustainable given the risk of generic products competition; (2) the Spectrum Acquisition was less valuable than Assertio had represented to investors; and (3) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on the company’s profitability.
WHAT SHOULD I DO?
- I worked at ASRT. What should I do?
If you were an employee of ASRT during the period relevant to the class-action case, you may have valuable information that could be relevant to the lawsuit. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or ASRT@hbsslaw.com.
- There are multiple law firms participating, do I need to contact all of them?
No, you do not need to contact all participating law firms. Generally, class-action lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions
AM I ELIGIBLE?
- What is the threshold amount to be eligible? What are “substantial” losses?
The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.
CAN I PARTICPATE?
- Am I affected? What do I need to do to participate?
If you were an investor in ASRT during the relevant period specified in the class-action lawsuit, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.
- Can any ASRT investor participate?
In most class-action cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.
- I bought on a non-U.S. Exchange. Can I participate?
No. This class-action only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.
- Am I included if I still hold my shares, or do I need to sell to participate?
Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.