Assertio Holdings, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of Illinois on behalf of those who acquired Assertio Holdings, Inc. (“Assertio” or the “Company”) (NASDAQ: ASRT) securities during the period from March 9, 2023 through November 8, 2023, inclusive. Investors have until March 5, 2024 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
In July 2023, Assertio acquired Spectrum Pharmaceuticals, Inc., a biopharmaceutical company focused on novel and targeted oncology, along with its injection asset, Rolvedon. On August 3, 2023, Zydus Lifesciences Limited (“Zydus”), a generic pharmaceutical company, received approval from the U.S. Food and Drug Administration (“FDA”) to manufacture and market 50mg indomethacin suppositories, the generic version of the Company’s Indocin Suppositories. Specifically, the FDA granted Zydus 180-day Competitive Generic Therapies exclusivity to market the product. Following the FDA’s decision, Assertio withdrew its 2023 financial outlook previously issued in May 2023. On this news, the price of Assertio shares declined by $2.44 per share, or approximately 45.61%, from $5.35 per share to close at $2.91 on August 4, 2023.
On November 8, 2023, Assertio issued a press release announcing its financial results for the Q3 2023. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million. Assertio’s Chief Executive Officer, Dan Peisert called the Company’s Q3 2023 results “disappointing,” noting that “the loss of Indocin exclusivity and Rolvedon results below expectations [drove] significant charges to our net income” and that the Company was “learning” that “certain aspects” of its July 31, 2023 acquisition of Spectrum Pharmaceuticals Inc. “may not be everything we initially expected.” On this news, the price of Assertio shares declined by $0.92 per share, or approximately 43.19%, from $2.13 per share to close at $1.21 on November 9, 2023.
On January 3, 2024, Assertio issued a press release announcing that Defendant Peisert was stepping down from his role as the Company’s Chief Executive Officer. On this news, the price of Assertio shares declined by $0.13 per share, or approximately 11.4%, from $1.14 per share to close at $1.01 on January 3, 2024.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company’s reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (ii) the Spectrum Acquisition was less valuable than Assertio had represented to investors; (iii) 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; and (iv) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
In July 2023, Assertio acquired Spectrum Pharmaceuticals, Inc., a biopharmaceutical company focused on novel and targeted oncology, along with its injection asset, Rolvedon. On August 3, 2023, Zydus Lifesciences Limited (“Zydus”), a generic pharmaceutical company, received approval from the U.S. Food and Drug Administration (“FDA”) to manufacture and market 50mg indomethacin suppositories, the generic version of the Company’s Indocin Suppositories. Specifically, the FDA granted Zydus 180-day Competitive Generic Therapies exclusivity to market the product. Following the FDA’s decision, Assertio withdrew its 2023 financial outlook previously issued in May 2023. On this news, the price of Assertio shares declined by $2.44 per share, or approximately 45.61%, from $5.35 per share to close at $2.91 on August 4, 2023.
On November 8, 2023, Assertio issued a press release announcing its financial results for the Q3 2023. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million. Assertio’s Chief Executive Officer, Dan Peisert called the Company’s Q3 2023 results “disappointing,” noting that “the loss of Indocin exclusivity and Rolvedon results below expectations [drove] significant charges to our net income” and that the Company was “learning” that “certain aspects” of its July 31, 2023 acquisition of Spectrum Pharmaceuticals Inc. “may not be everything we initially expected.” On this news, the price of Assertio shares declined by $0.92 per share, or approximately 43.19%, from $2.13 per share to close at $1.21 on November 9, 2023.
On January 3, 2024, Assertio issued a press release announcing that Defendant Peisert was stepping down from his role as the Company’s Chief Executive Officer. On this news, the price of Assertio shares declined by $0.13 per share, or approximately 11.4%, from $1.14 per share to close at $1.01 on January 3, 2024.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) the Company’s reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (ii) the Spectrum Acquisition was less valuable than Assertio had represented to investors; (iii) 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; and (iv) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.