The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that class action litigation has been filed on behalf of investors who purchased or otherwise acquired the publicly traded common stock of Mylan N.V. ("Mylan" or the "Company") (Nasdaq: MYL) between February 16, 2016 and May 7, 2019, inclusive (the "Class Period").
If you purchased the common stock of Mylan during the Class Period, you may move the Court for appointment as lead plaintiff by no later than August 25, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Mylan investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should click here or contact Sharon M. Lee of Lieff Cabraser toll-free at 1-800-541-7358.
Background on the Mylan Securities Class Litigation
Mylan, incorporated in the Netherlands and headquartered in Canonsburg, Pennsylvania, is the second largest generic drug manufacturer in the world. During the Class Period, Mylan’s largest U.S. manufacturing facility was located in Morgantown, West Virginia.
The action alleges defendants made material misrepresentations and omissions regarding Mylan’s failure to comply with U.S. federal quality control regulations, particularly at its Morgantown facility. Under a scheme implemented by Mylan’s President, defendant Rajiv Malik, Mylan chemists allegedly manipulated quality control test data to create the illusion that Mylan’s drugs had achieved passing quality control results.
On June 28, 2018, Mylan disclosed that the U.S. Food and Drug Administration ("FDA") had conducted an investigation into the Morgantown facility in the spring of 2018, which culminated in the FDA’s issuance of its second citation in less than two years. The FDA’s investigation detailed 13 significant deficiencies in Mylan’s operations, including poor quality control oversight, major lapses in equipment cleaning, and ineffective controls. On this news, the price of Mylan stock fell $1.12 per share, or approximately 3%, from a closing price of $37.45 on June 27, 2018, to close at $36.33 per share on June 28, 2018.
On August 8, 2018, during Mylan’s second quarter of 2018 earnings conference call, defendant Malik stated that Mylan had "undertaken a restructuring and remediation program in Morgantown" that included a "discontinuation of a number of products" and would have a "negative impact on production levels, product supply and operations." On this news, the price of Mylan stock fell $2.62 per share, or 6.69%, from a closing price of $39.23 on August 7, 2018, to close at $36.61 per share on August 8, 2018, on extremely elevated trading volume.
On November 9, 2018, the FDA issued a formal warning letter concerning "significant violations of current good manufacturing practice[s]" at Mylan’s Morgantown plant, and reporting that products at the plant were "adulterated." On this news, the price of Mylan stock fell $1.01 per share, or 2.73%, from a closing price of $36.95 on November 9, 2018, to close at $35.94 per share on November 12, 2018.
On February 26, 2019, during Mylan’s fourth quarter and fiscal year 2018 earnings conference call, the Company announced an 18% decrease in net sales from the prior year, attributing this shortfall, in part, to its Morgantown restructuring, which included the discontinuation of almost 250 products. On this news, the price of Mylan stock fell $4.61 per share, or 15.05%, from a closing price of $30.62 on February 26, 2019 to close at $26.01 per share on February 27, 2019.
On May 7, 2019, Mylan reported that its revenues and earnings-per-share were down year-over-year by 7% and 15%, respectively, as the Company discontinued manufacturing certain products in the Morgantown facility, and that its quarterly adjusted free cash flow was severely lacking, now matching its 2015 levels. On this news, the price of Mylan shares fell $6.73 per share, or 23.81%, from a closing price of $28.26 on May 6, 2019, to close at $21.53 per share on May 7, 2019, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
The National Law Journal has recognized Lieff Cabraser as one of the nation’s top plaintiffs’ law firms for fourteen years. In compiling the list, the National Law Journal examines recent verdicts and settlements and looked for firms "representing the best qualities of the plaintiffs’ bar and that demonstrated unusual dedication and creativity." Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s "laser focus" and noting that our firm routinely finds itself "facing off against some of the largest and strongest defense law firms in the world." Benchmark Litigation has named Lieff Cabraser one of the "Top 10 Plaintiffs’ Firms in America."
For more information about Lieff Cabraser and the firm’s representation of investors, please visit https://www.lieffcabraser.com/.
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Sharon M. Lee
Lieff Cabraser Heimann & Bernstein, LLP