SAN DIEGO & NEWARK, Calif.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against Depomed, Inc. (NasdaqGS: DEPO). The complaint is brought on behalf of all purchasers of Depomed securities between February 26, 2015 and August 7, 2017, for alleged violations of the Securities Exchange Act of 1934 by Depomed's officers and directors. Depomed, a specialty pharmaceutical company, engages in the development, sale, and licensing of products for pain and other central nervous system conditions in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/depomed-inc
Depomed Accused of Engaging in Questionable Opioid Sales Practices
According to the complaint, Depomed acknowledged in its public filings that the company may incur significant liability if it is found to have promoted the "off-label" use of drugs and that any failure to comply with applicable statutes or regulations could adversely affect the business. Depomed officials failed to inform investors that the company was engaging in questionable practices in connection with the sales and marketing of its opioid products, which would likely subject the company to increased legal and regulatory scrutiny when discovered. On August 7, 2017, Depomed revealed that the company recently received a request for information from the ranking minority member of the U.S. Senate Committee on Homeland Security and Governmental Affairs related to the promotion of opioids. Depomed further disclosed that it had received subpoenas related to opioid sales and marketing from the Office of the Attorney General of Maryland and the U.S. Department of Justice. On this news, Depomed's stock fell $3.09 per share, or over 33%, to close at $6.15 per share on August 8, 2017.
Depomed Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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