Diplomat Pharmacy, Inc.
Class Period: Oct 9, 2014 to Nov 2, 2016
Lead Plaintiff Deadline: Jan 9, 2017 + Deadline passed
Summary of Case:
A securities class action has been filed against Diplomat Pharmacy, Inc. ("Diplomat" or the "Company") (NYSE: DPLO) on behalf of a class (the "Class") consisting of persons and entities that purchased or otherwise acquired Diplomat securities between October 9, 2014 and November 2, 2016. This case has been filed in the USDC - Eastern District of Michigan.
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: (1) the Company lacked adequate internal controls over its financial reporting; (2) as a result the Company could not adequately calculate DIR fees; (3) the Company's hepatitis C segment was not performing as previously disclosed to investors; (4) and therefore, the Company had overstated its full-year 2016 guidance; and (5) that, as a result of the foregoing, Defendants' statements about Diplomat's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
Diplomat operates one of the largest independent specialty pharmacy networks in the United States. On November 2, 2016, after the market close, the Company reported third quarter 2016 results that fell below investors' expectations. The Company also lowered full year 2016 guidance, with the CEO and Chairman commenting, "we are disappointed with our third quarter results, which were significantly impacted by the softness in the hepatitis C business nationwide, as well as by DIR fees. The methodology and transparency around how PBMs are applying these DIR fees changed materially in 2016, and while we cannot reverse the impact they had on this quarter, we are working with our partners in the specialty pharmacy industry and with legislators to achieve an amicable solution to this problem."
On this news, Diplomat stock fell $9.43 per share, or over 42%, to close at $12.95 per share on November 3, 2016.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.