We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Attached Documents

Related

Sections

Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only

Court

California Central

Nature of Suit

Securities/Commodities

Judge

Subscribers Only

Date Filed

February 24, 2019

Law Firms

Companies