Diplomat Pharmacy Misled Investors About New Venture: Suit
Law360 (February 25, 2019, 4:59 PM EST) -- Diplomat Pharmacy misled investors about the success of a new business venture, causing a 56 percent plunge in stock price when the company revealed it would have to write off millions in goodwill and assets, a shareholder told a California federal court in a proposed class action complaint filed Sunday.
The independent specialty pharmacy company and its executives didn’t disclose until Friday that its new pharmacy benefit management business was facing shrinking financial forecasts, forcing Diplomat to devalue a “significant portion” of $630 million in goodwill and intangible assets, the complaint says. Following this news, Diplomat’s common stock value dropped 56...
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