SAN DIEGO & PHILADELPHIA--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Lannett Company (NYSE: LCI) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 7, 2018 and August 17, 2018. Lannett develops, manufactures, packages, markets, and distributes generic versions of brand pharmaceutical products in the United States.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/lannett-company-sept-2018/
Lannett Accused of Misleading Investors About Its Risk of Losing Major Exclusivity Agreement
According to the complaint, Lannett has an exclusivity agreement with its primary supplier, Jerome Stevens Pharmaceuticals ("JSP"), which is set to expire on March 23, 2019. JSP's products have historically accounted for at least one-third of Lannett's sales. Lannett represented to investors that the company was focused on strengthening its relationship with JSP. It therefore came as a surprise to investors when, on August 20, 2018, Lannett announced that its distribution agreement with JSP would not be renewed. On this news, Lannett's stock plummeted over 60% to close at $5.35 per share that day, and has yet to recover.
Lannett 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. Sign up for our FREE portfolio monitoring service, Stock Watch.
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