LAWSUITS NEWS & LEGAL INFORMATION
Preliminary $60M Settlement Reached in Hospira Securities Class Action Lawsuit
This is a settlement for the Securities/Stock Fraud lawsuit.
New York, NY: Hospira Inc, has agreed to pay $60 million to settle a securities class action lawsuit alleging the pharmaceutical company violated securities laws by providing misleading positive statements which resulted in artificially inflated share prices.
If approved, the settlement will end the lawsuit which was filed in 2011 by a group of pension fund investors including KBC Asset Management NV, Heavy & General Laborers' Locals 472 & 172 Pension & Annuity Funds, Sheet Metal Workers' National Pension Fund, and Roofers Local No. 149 Pension Fund.
Hospira' portfolio includes more than 200 generic injectable products. According to the plaintiffs, the pharmaceutical company issued materially false and misleading statements and "touted to investors [its] ability to streamline its process and practices in order to boost the company' long-term profitability and increase the return for Hospira shareholders." However, the company failed to fully disclose manufacturing deficiencies that led to an US Food and Drug Administration (FDA) investigation.
That investigation, coupled with a problem at the company' manufacturing plant in Rocky Mount, NC, resulted in a subsequent 21 percent drop in share price, the lawsuit alleged.
"The settlement is the result of well-informed and extensive arm'-length negotiations between and among highly experienced counsel, facilitated by a respected mediator. Lead Plaintiffs respectfully submit that the proposed settlement is fair, reasonable and adequate, and therefore ask the court to enter the accompanying [order approving the settlement],"the lead plaintiffs' memorandum supporting the settlement said.
Hospira denies any wrongdoing.
Published on Mar-31-14
If approved, the settlement will end the lawsuit which was filed in 2011 by a group of pension fund investors including KBC Asset Management NV, Heavy & General Laborers' Locals 472 & 172 Pension & Annuity Funds, Sheet Metal Workers' National Pension Fund, and Roofers Local No. 149 Pension Fund.
Hospira' portfolio includes more than 200 generic injectable products. According to the plaintiffs, the pharmaceutical company issued materially false and misleading statements and "touted to investors [its] ability to streamline its process and practices in order to boost the company' long-term profitability and increase the return for Hospira shareholders." However, the company failed to fully disclose manufacturing deficiencies that led to an US Food and Drug Administration (FDA) investigation.
That investigation, coupled with a problem at the company' manufacturing plant in Rocky Mount, NC, resulted in a subsequent 21 percent drop in share price, the lawsuit alleged.
"The settlement is the result of well-informed and extensive arm'-length negotiations between and among highly experienced counsel, facilitated by a respected mediator. Lead Plaintiffs respectfully submit that the proposed settlement is fair, reasonable and adequate, and therefore ask the court to enter the accompanying [order approving the settlement],"the lead plaintiffs' memorandum supporting the settlement said.
Hospira denies any wrongdoing.
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please fill in our form.Published on Mar-31-14
