RM Law announces that a class action lawsuit has been filed in United States District Court for the Eastern District of Michigan on behalf of all persons or entities that purchased Diplomat Pharmacy, Inc. (NYSE: DPLO) (“Diplomat Pharmacy” or the “Company”) common shares between October 9, 2014 and November 2, 2016, inclusive (the “Class Period”).
Diplomat Pharmacy shareholders may, no later than January 9, 2017, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Diplomat Pharmacy and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/dplo.
Diplomat Pharmacy operates one of the largest independent specialty pharmacy networks in the United States.
The complaint alleges that 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 the Company’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
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 Pharmacy stock fell $9.43 per share, or over 42%, to close at $12.95 per share on November 3, 2016.
If you are a member of the class, you may, no later than January 9, 2017, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.