BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming January 9, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Diplomat Pharmacy, Inc. (“Diplomat” or the “Company”) (NYSE: DPLO) securities between October 9, 2014 and November 2, 2016, inclusive (the “Class Period”). Diplomat investors have until January 9, 2017 to file a lead plaintiff motion.
Diplomat operates one of the largest independent specialty pharmacy networks in the United States. 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 stock fell $9.43 per share, or over 42%, to close at $12.95 per share on November 3, 2016.
The complaint filed in this lawsuit alleges that throughout the Class Period, 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 Diplomat’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
If you purchased Diplomat shares, you may move the Court no later than January 9, 2017 to request appointment as lead plaintiff. To be a member of the class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at http://www.howardsmithlaw.com.
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