Case Summary

Eagle Pharmaceuticals

NASDAQ: EGRX

Case Details

  • Miller v. Eagle Pharmaceuticals, Inc. et al.
  • Class Period:August 08, 2023 - November 28, 2023
  • Date Filed:December 11, 2023
  • Jurisdiction:U.S. District Court, District of New Jersey
  • Docket Number: 2:23-cv-23011
  • Lead Plaintiff Deadline: February 9, 2024
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Overview

A class action lawsuit has been filed against Eagle Pharmaceuticals, Inc., (“Eagle Pharmaceuticals”, “EG”, or the “Company”) (NASDAQ: EGRX) and certain of the Company’s top executive officers alleging that they violated the federal securities laws.  The lawsuit seeks to represent all persons and entities who purchased or otherwise acquired Eagle Pharmaceuticals securities between August 8, 2023, and November 28, 2023, both dates inclusive (the “Class Period”).

Eagle Pharmaceuticals, Inc. is a fully integrated pharmaceutical company with research and development, clinical, manufacturing, and commercial capabilities. The Company is focused on developing medicines that result in improvements in patients’ lives.

The lawsuit alleges that defendants failed to disclose to investors: (1) that the Company was experiencing slower-than[1]anticipated pull-though from a wholesale customer predominantly due to expiry of inventory; (2) that, as a result, the Company had overstated its revenue; (3) that the Company did not have effective internal controls and procedures over financial reporting as to PEMFEXY sales; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On November 9, 2023, before the market opened, Eagle Pharmaceuticals announced that it would not release its third quarter 2023 results that day (as had been expected) because the Company “requires more time to review potential adjustments relating to the reporting of sales of PEMFEXY prior to filing its Form 10-Q.” The Company also disclosed it “expects to revise its previously disclosed 2023 full year guidance downward.” On this news, the Company’s stock price fell $4.16, or 30.4%, to close at $9.54 per share on November 9, 2023, on unusually heavy trading volume.

After the market closed on November 9, 2023, the Company also disclosed that it was reviewing “potential adjustments to reserves for returns and price adjustments of approximately $15.0 million to $20.0 million.” These amounts relate “to returns and a price adjustment for PEMFEXY stemming from slower-than-anticipated pull-through from a wholesale customer predominantly due to expiry of inventory.” On this news, the Company’s stock price fell $0.27, or 2.8%, to close at $9.27 per share on November 10, 2023, on unusually heavy trading volume.

Then, on November 29, 2023, before the market opened, Eagle Pharmaceuticals disclosed that Scott Tarriff, the Company’s President and Chief Executive Officer resigned. The Company’s board of directors accepted the resignation “[a]fter consideration of various alternatives, including termination with or without cause.” On this news, the Company’s stock price fell $2.55, or 31%, to close at $5.68 per share on November 29, 2023, on unusually heavy trading volume.

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If you purchased or otherwise acquired publicly traded Eagle Pharmaceuticals securities between August 8, 2023, and November 28, 2023, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Eagle Pharmaceuticals lawsuit is February 09, 2024.

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