SAN FRANCISCO, Feb. 05, 2024 (GLOBE NEWSWIRE) -- Hagens Berman urges Assertio Holdings, Inc. (NASDAQ: ASRT) investors who suffered substantial losses to submit your losses now.
Class Period: Mar. 9, 2023 – Nov. 8, 2023
Lead Plaintiff Deadline: Mar. 5, 2024
Visit: www.hbsslaw.com/investor-fraud/asrt
Contact An Attorney Now: ASRT@hbsslaw.com
844-916-0895
Assertio Holdings, Inc. (ASRT) Securities Fraud Class Action:
On Jan. 4, 2024, securities analyst Sidoti & Company lowered its price target of Assertio Holdings (ASRT) shares by 25% and also significantly cut its 2024 and 2025 revenue estimates. In support of its dim view of the company’s immediate future, Sidoti’s report cited “increased competition for Indocin and the high inventory of Rolvedon in the sales channel continues to pressure sales.”
The gloomy analyst projections coincide with two other recent adverse events for Assertio. First, on Jan. 5, ASRT shares nose-dived after the Company announced that CEO Dan Peisert was stepping down. Notably, Assertio characterized Peisert’s separation from the company as an “involuntary termination.”
Second, immediately following Peisert’s termination, ASRT investors filed a securities fraud class action suit alleging Assertio securities were artificially inflated for the period of Mar. 9, 2023 and Nov. 8, 2023, inclusive.
Specifically, the complaint alleges Assertio misrepresented and concealed 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 dismal 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 ROLVEDON sales.
Presently, the securities suit does not link Peisert’s termination with the alleged fraud.
"We are investigating whether Peisert’s abrupt departure could be related to the alleged wrongdoing,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Assertio and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman »
If you’d like more information and answers to frequently asked questions about the Assertio case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Assertio should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new 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, call Reed Kathrein at 844-916-0895 or email ASRT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
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Contact:
Reed Kathrein, 844-916-0895
