BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith reminds investors of the upcoming March 13, 2017 deadline to file a lead plaintiff motion in the class action filed on behalf of a class of investors who purchased or otherwise acquired 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.
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 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.
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 U.S. 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. The Company continued to misrepresent the sustainability of its business model while perpetuating a massive stock buyback program to stabilize its ADR price.
If you purchased Novo Nordisk ADRs, 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 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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