NEW YORK, Dec. 9, 2011 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Hospira, Inc. ("Hospira" or the "Company") during the period March 24, 2009 through November 28, 2011 (the "Class Period"). Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
Hospira is a global specialty pharmaceutical and medication delivery company. The investigation concerns whether Hospira made false and misleading statements regarding the Company's financials and business prospects. Specifically, the Company failed to disclose that it had myriad manufacturing deficiencies and a host of design failures in its critical infusion pump business while touting the Company's Project Fuel campaign, which was designed to improve Hospira's margins, fuel growth, and improve operational and manufacturing efficiency.
On October 18, 2011, the Company announced disappointing preliminary third quarter financial results and slashed full-year guidance, pointing to a production disruption at its Rocky Mount, North Carolina manufacturing plant, which accounted for approximately 25% of the Company's sales. On this news, shares of Hospira common stock fell 21%, or $7.85 per share, to close at $29.51.
On November 28, 2011, an analyst from RBC Capital Markets LLC, Shibani Malhotra published an analyst report stating that the Company's "manufacturing issues are far greater than investors realize and will take a minimum of 2-3 years to resolve" and it is "more likely than not" that the FDA will seek a consent decree against the Company to ensure violations at Hospira are fixed.
As a result of this news, Hospira shares fell an additional $2.81 or 9%, to close at $28.17 on November 29, 2011.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.