LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors of the March 13, 2017 deadline to file a lead plaintiff motion in the class action filed by GPM on behalf of a class (the “Class”) of investors who purchased Novo Nordisk A/S (“Novo Nordisk” or the “Company”) (NYSE: NVO) American Depository Receipts (“ADRs”) between February 5, 2015 and October 27, 2016, inclusive (the “Class Period”). Novo Nordisk investors have until March 13, 2017 to file a lead plaintiff motion.
The Complaint filed in this class action alleges that throughout the Class Period, Defendants reported impressive revenue, operating profit growth and sales growth, and informed investors that the Company would achieve sales and operating profit growth of between 5% and 9% in 2016, as well as 10% operating profit growth over the long-term. All the while, however, Defendants were informed by the company’s US organization and could infer from other data sources that Novo Nordisk’s aggressive pricing model produced unsustainable revenues, and its inflated earnings and profit forecasts concealed the true extent of the pricing pressures the Company was experiencing, yet continued to misrepresent the sustainability of its business model while perpetuating a massive stock buyback program to stabilize its ADR price.
On August 5, 2016, Novo Nordisk disclosed disappointing earnings for the second quarter of 2016, shrinking its predictions for sales growth and reporting the loss of a contract with a large U.S. pharmacy benefit manager ("PBM").
On this news, Novo Nordisk's ADR price fell over 9% on August 5, 2016.
Then, on October 28, 2016, Novo Nordisk announced its second consecutive quarter of disappointing earnings and cut its long-term profit-growth forecasts by 50%. Additionally, the Company also acknowledged receipt of a Civil Investigative Demand from the U.S. Attorney's Office for the Southern District of New York for information concerning Novo Nordisk's contracts and business relationships with PBMs related to certain of the Company's insulin products.
On this news, Novo Nordisk's ADR price fell over 12% on October 28, 2016.
If you purchased or otherwise acquired Novo Nordisk ADRs during the Class Period you may move the Court no later than March 13, 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 Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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