NEW YORK, Jan. 24, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Mallinckrodt plc (“Mallinckrodt” or the “Company”) (NYSE:MNK) in the United States District Court for the District of Columbia on behalf of purchasers of common stock of Mallinckrodt between November 25, 2014 and January 18, 2017 (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the Securities Exchange Act of 1934.
According to the Complaint, Defendants made false and/or misleading statements and/or failed to disclose that Acthar’s monopoly status as the only FDA-approved ACTH preparation was the product of unlawful anticompetitive practices and failed to disclose that its increasing reliance on Medicare and Medicaid meant that the Company’s monopolistic Acthar revenue would be threatened if the government took action to limit the price paid for this drug by taxpayers. The truth about the Company’s dependence on Medicare and Medicaid for Acthar revenue began to surface on November 9, 2015, when Citron Research (“Citron”) issued a statement on Twitter comparing Mallinckrodt to Valeant Pharmaceuticals International, Inc. In the wake of the Citron comment, Mallinckrodt’s stock price fell 17% from a close of $69.89 per share on November 6, 2015, to close at $58.01 per share on November 9, 2015.
On November 16, 2016, Citron published a report (the “Citron Report”) accusing the Company of securities fraud in connection with the Company’s statements downplaying its reliance on Medicare and Medicaid for Acthar revenue. Among other things, the Citron Report reported that payments from Medicare and Medicaid comprised a substantially larger percentage of Acthar sales than the Company previously represented. In the wake of the Citron Report, Mallinckrodt’s stock price fell 18.4% from a close of $67.80 per share on November 15, 2016, to close at $55.32 per share on November 17, 2016.
If you wish to serve as lead plaintiff, you must move the Court no later than March 27, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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