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You must submit the settlement Proof form attached below, in order to participate in this settlement. There is a strict deadline of September 23, 2019 by which all claims must be submitted. The instructions for submitting are included in the Proof and the Notice files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
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May 7, 2019 - The court preliminarily approved the settlement.
April 22, 2019 - A stipulation of settlement was filed by the parties.
January 19, 2018 - The court denied defendants' motion to dismiss.
May 26, 2017 - A motion to dismiss the amended complaint was filed.
April 11, 2017 - An amended complaint was filed.
November 10, 2016 - An investor in shares of Diplomat Pharmacy Inc (NYSE: DPLO) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan over alleged violations of Federal Securities Laws by Diplomat Pharmacy Inc in connection with certain allegedly false and misleading statements made between October 9, 2014 and November 2, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Diplomat Pharmacy Inc (NYSE: DPLO) common shares between October 9, 2014 and November 2, 2016, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that between October 9, 2014 and November 2, 2016 the defendants made false and/or misleading statements and/or failed to disclose that Diplomat Pharmacy Inc lacked adequate internal controls over its financial reporting, that as a result Diplomat Pharmacy Inc could not adequately calculate DIR fees, that the Company’s hepatitis C segment was not performing as previously disclosed to investors, that and therefore, Diplomat Pharmacy Inc had overstated its full-year 2016 guidance, and that that, as a result of the foregoing, defendants’ statements about Diplomat Pharmacy Inc’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis. Diplomat Pharmacy Inc reported that its annual Total Revenue rose from over $1.51 billion in 2013 to over $3.36 billion in 2015 and that its Net loss of $26.12 million in 2013 turned into a Net Income of $25.78 million in 2015.
On November 2, 2016, Diplomat Pharmacy Inc reported third quarter 2016 results. Diplomat Pharmacy Inc 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.”
Shares of Diplomat Pharmacy Inc (NYSE: DPLO) declined to as low as $12.47 per share on November 4, 2016. On November 8, 2016, NYSE: DPLO shares closed at $13.73 per share.