RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Philip Morris International Inc. (“Philip Morris” or the “Company”) (NYSE: PM) common stock between July 26, 2016 and April 18, 2018, inclusive (the “Class Period”).
Philip Morris shareholders may, no later than November 5, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Philip Morris 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 (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
Philip Morris is one of the largest and most recognizable cigarette and tobacco manufacturing companies in the world.
The Complaint alleges that during the Class Period, Defendants emphasized a “wide array of benefits” of heat-not-burn products such as IQOS – including the “potential to reduce the risk of smoking related diseases” and less harmful than cigarettes. However, Defendants’ statements were materially false and misleading because Defendants failed to disclose that there were irregularities in the clinical experiments underpinning Philip Morris’ applications to the U.S. Food and Drug Administration (“FDA”) for IQOS in the United States. On news of a report detailing irregularities in the clinical trials underpinning the Company’s FDA application, the Company’s stock price fell $3.75 per share or 3.5 percent, to close at $104.37 per share on December 20, 2017. Then on January 25, 2018, it was reported that the FDA had recommended for the rejection of Philip Morris’ bid to market IQOS as safer than traditional cigarettes in the United States. On this news, the Company’s stock price fell $3.11 per share or 2.81 percent, to close at $107.49 per share on January 25, 2018.
Concurrent with the FDA application for marketing IQOS in the United States, the Company was experiencing negative sales trends due to declining smoking percentages worldwide. During this period, Defendants were reassuring investors that these negative sales trends were being successfully offset by new sales initiatives and touted steady growth mainly attributed to the success of IQOS. However, Defendants failed to disclose (i) that Philip Morris was experiencing a faster decline in overall cigarette and e-cigarette (or heated tobacco) sales volumes than investors had been led to believe, (ii) that its much-lauded sales initiatives had stalled, and (iii) that it was experiencing adverse sales headwinds in key markets. Later, on April 19, 2018, Philip Morris announced disappointing results for the Company’s first quarter of 2018. On this news, the Company’s stock price fell $15.80 per share, or more than 15 percent, to close at $85.64 per share on April 19, 2018.
If you are a member of the class, you may, no later than November 5, 2018, 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, P.C. or other counsel of your choice, to serve as your counsel in this action.