Depomed a specialty pharmaceutical focused on pain relief therapies was hit on Monday by a class action lawsuit announcement from law firm Levi & Korsinsky.
A law firm is asking investors to step up for a class action lawsuit against a specialty pharmaceutical focused on pain relief therapies.
Depomed (NASDAQ:DEPO), a specialty pharmaceutical focused on pain relief therapies was hit on Monday (August 28) by a class action lawsuit announcement from law firm Levi & Korsinsky. The law firm is giving investors of the company from the period of time between February 26, 2015, and August 7 of this year, a deadline of October 17 to request to be appointed lead plaintiff.
The lawsuit was filed in the United States District Court for the Northern District of California.
The complaint alleges that throughout the class period Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) Depomed engaged in questionable practices in connection with the sales and marketing of the Company’s opioid products; (ii) the foregoing conduct, when it became known, would likely subject the Company to heightened legal and regulatory scrutiny; and (iii) as a result, Depomed’s public statements were materially false and misleading at all relevant times.
On August 7, 2017, post-market, Depomed disclosed that the Company “received a request for information from the ranking minority member of the United States Senate Committee on Homeland Security and Governmental Affairs related to the promotion of opioids” and that the Company had received “subpoenas related to opioid sales and marketing from the Office of the Attorney General of Maryland and the United States Department of Justice.”
According to the press release, there is no class certification in this case as of yet.
Investors have been asked to submit information to law firm, which is seeking a lead plaintiff
Depomed was hopeful to put a positive spin on Monday by announcing it is joining a coalition of companies working to reduce the abuse of prescription opioids, which has led to one of the biggest epidemics currently affecting the US. The Collaborative for Effective Prescription Opioid Policies (CEPOP) is a group of stakeholders seeking the reduction of opioid medication abuse.
“CEPOP supports a comprehensive and balanced public policy agenda that reduces abuse and promotes treatment options,” the company said.
Arthur Higgins president and CEO of the company said in a statement about the coalition, Depomed will work with this group to work on better strategies for the responsible use of opioids, while still looking out for patients needs in terms of pain relieving.
Despite the lawsuit announcement, shares of Depomed saw a rise Monday, increasing 1.81 percent and closing the trading day at $6.20, while after hours its share price declined 0.85 percent. Year-to-date, Depomed’s stock price has seen a 65.59 percent decrease so far in 2017.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.