NEW YORK--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/philipmorris/) today announced that a class action has been commenced by an institutional investor on behalf of purchasers of Philip Morris International Inc. (NYSE: PM) common stock during the period between February 8, 2018 and April 18, 2018 (the “Class Period”). This action was filed in the Southern District of New York and is captioned City of Westland Police and Fire Retirement System v. Philip Morris International Inc., No. 18-cv-08049.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Philip Morris common stock during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Brian Cochran of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at djr@rgrdlaw.com. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/philipmorris/.
The complaint charges Philip Morris and certain of its officers with violations of the Securities Exchange Act of 1934. Philip Morris is one of the largest and most recognizable cigarette and tobacco manufacturing companies in the world. The Company’s subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other nicotine-containing products in markets outside of the United States.
The complaint alleges that during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and prospects, including that Philip Morris was experiencing a faster decline in overall cigarette and e-cigarette (or “heated tobacco”) sales volumes during the first quarter of 2018 than investors had been led to believe, that its much-lauded sales initiatives had stalled, and that it was experiencing adverse sales headwinds in key markets. As a result of these misrepresentations, Philip Morris stock traded at artificially inflated prices during the Class Period, reaching a high of $109 per share. In addition, while the Company’s stock price was artificially inflated, the Company’s CEO sold 49,000 shares of his Philip Morris stock at these artificially inflated prices for proceeds of more than $5 million.
Then, on April 19, 2018, Philip Morris issued a press release announcing disappointing results for the Company’s first quarter of 2018. Against its easiest prior-year comparison, the Company reported that combined cigarette and heated tobacco unit shipment volume had declined by 2.3% during the quarter. The Company also stated that key sales initiatives had stalled, as the Company’s heated tobacco unit growth had plateaued due to market demographics and faltering consumer conversion tactics and, further, that cigarette shipments had fallen by 5.3% during the quarter, signaling persistent adverse trends in the business. On this news, the price of Philip Morris stock declined $15.80 per share, or more than 15%, to close at $85.64 per share on April 19, 2018.
Plaintiff seeks to recover damages on behalf of all purchasers of Philip Morris common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
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