NEW YORK, July 08, 2016 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed
against Perrigo Company plc (“Perrigo” or the “Company”) (NYSE:PRGO) and certain of its officers. The class action, filed in
United States District Court, Southern District of New York, and docketed under 16-cv-04752, is on behalf of a class consisting of
all persons or entities who purchased or otherwise acquired Perrigo securities between April 21, 2015 and May 11, 2016 inclusive
(the “Class Period”). This class action seeks to recover damages against Defendants for alleged violations of the federal
securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased Perrigo securities during the Class Period, you have until July 18, 2016
to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who
inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
[Click here to join this class action]
Perrigo, together with its subsidiaries, develops, manufactures, markets, and distributes over-the-counter
consumer goods and pharmaceutical products worldwide.
Mylan, like Perrigo, develops, licenses, manufactures, markets, and distributes generic, branded generic, and
specialty pharmaceuticals worldwide. On April 8, 2015, Mylan approached Perrigo’s Board of Directors with an offer to
purchase the Company for $205 per share. Mylan’s offer represented a nearly 30% premium to the Company’s total market
capitalization and was well received by investors. During intraday trading on April 8, 2015, following news of the offer, the
price of Perrigo stock climbed to nearly $216 per share.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading
statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or
misleading statements and/or failed to disclose that: (i) Perrigo as a standalone entity would be unable to achieve organic revenue
growth of 5% to 10%; (ii) Perrigo’s competitive position and growth strategy were not “durable” but were in fact eroding; (iii)
Perrigo was facing serious issues integrating the acquisition of Omega Pharma N.A. (“Omega”) into the Company and had significantly
overpaid for Omega; (iv) for the foregoing reasons, among others, Mylan’s offer did not undervalue Perrigo; and (v) as a result of
the foregoing, Perrigo’s public statements were materially false and misleading at all relevant times.
On April 21, 2015, Perrigo publicly rejected Mylan’s offer. Touting Perrigo’s purportedly “durable
competitive position and compelling growth strategy,” the Company advised investors that the Mylan offer did “not take into account
the full benefits of the Omega Pharma acquisition” and “substantially undervalues Perrigo and its growth prospects.” Even
after Mylan raised its offer to $235 per share, over the next six months Perrigo continued to publicly urge the Company’s
shareholders to reject Mylan’s offer. Perrigo cited as reasons the 5% to 10% annual organic revenue growth that Perrigo would
achieve as a standalone entity and the synergies of the Company’s recent acquisition of Omega.
On November 13, 2015, swayed by Perrigo’s public opposition to Mylan’s offer, the majority of the Company’s
shareholders declined to tender their shares, causing the failure of the tender offer. As a result, Perrigo’s share price
fell $9.65, or 6.16%, to close at $146.90 on November 13, 2015.
On February 18, 2016, Perrigo issued a press release and filed a Current Report on Form 8-K with the SEC
announcing its net sales and adjusted net income for the quarter and year ended December 31, 2015 (the “2015 8-K”). The 2015
8-K reported lower fourth quarter revenue, margins, earnings and cash flow than investors had been led to expect and lowered the
Company’s earnings guidance for 2016. Perrigo also disclosed in the 2015 8-K an asset impairment charge of $185 million
related to the recently acquired Omega assets.
On this news, Perrigo’s share price fell $14.77, or 10.17%, to close at $130.40 on February 18, 2016.
Thereafter, on April 22, 2016, Reuters reported that Perrigo’s CEO, Defendant Papa, had been named CEO
of Perrigo’s competitor, Valeant Pharmaceuticals.
On this news, Perrigo’s share price fell $7.33, or 5.7%, to close at $121.35 on April 22, 2016.
On April 25, 2016, Perrigo confirmed Defendant Papa’s resignation from the Company. Concurrently, Perrigo
significantly lowered its earnings guidance for 2016 and reported weak preliminary first quarter results, citing increased
competitive pressures and weaker than expected performance by the Company’s Omega segment. Perrigo reported issues with the
integration of Omega and announced that the Company was contemplating another impairment charge related to the acquisition, just
two months after announcing the earlier $185 million impairment charge.
On this news, Perrigo’s share price fell $21.95, or 18%, to close at $99.40 on April 25, 2016.
On May 12, 2016, Perrigo issued a press release and filed a Current Report on Form 8-K with the SEC
announcing the Company’s financial and operating results for the quarter ended March 31, 2016 (the “Q1 2016 8-K”). In the Q1
2016 8-K, the Company reported a net loss of $0.93 for the quarter, citing an additional $467 million impairment charge relating to
the Omega acquisition. Discussing Perrigo’s performance on a conference call, the Company’s new CEO, John Hendrickson, stated
that Perrigo’s “recent track record of performance against our own expectations is unacceptable” and indicated that he intended to
target “realistic” forecasts that the Company could meet—thereby acknowledging that Perrigo, in its effort to thwart Mylan’s
takeover proposal, had previously asserted unrealistic and unattainable financial goals.
On these disclosures, Perrigo’s share price fell $3.71, or 4%, to close at $89.04 on May 12, 2016.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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 80
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
Robert S. Willoughby Pomerantz LLP rswilloughby@pomlaw.com
