SAN DIEGO--(BUSINESS WIRE)--Haeggquist & Eck, LLP, a leading shareholder rights litigation firm, is investigating whether certain officers and directors of Lannett Company, Inc. (“Lannett” or the “Company”) (NYSE: LCI) breached their fiduciary duties to the Company and its shareholders.
Lannett is a generic drug maker that grew quickly starting in 2013, largely due to big price increases. In fact, the price of its generic drug Digoxin, a life-saving heart failure drug, rose 857% from April 2013 to April 2015. Lannett’s business strategy has been to enter into industry-wide price fixing agreements with other drug manufacturers.
Extensive regulatory investigations have revealed that Lannett was involved in an industry-wide conspiracy to fix prices for at least 18 different generic drugs, including Levothyroxine and Doxycycline.
On May 10, 2019, the state of Connecticut and 40 other states filed an amended complaint launching a new wave of expanded charges against Lannett and other generic drug makers and their current and former employees. In fact, Lannett’s current Senior Vice President and Chief Commercial Operations Officer, Maureen Cavanaugh, and Lannett’s current Director of National Accounts, Tracey Sullivan-DiValerio, are named as defendants in the price-fixing suit.
This price-fixing could subject Lannett to massive fines of over $250 million, according to Seeking Alpha. Lannett is also defending itself against lawsuits alleging securities fraud, consumer fraud, and antitrust violations. On May 15, 2019, the federal court denied Lannett’s motion to dismiss the securities fraud complaint, which allows that litigation to proceed.
What You Can Do
If you are an Lannett shareholder, you may have legal claims against Lannett’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please call attorney Amber Eck at 619-342-8000 or e-mail her at firstname.lastname@example.org. There is no cost or obligation to you.
Haeggquist & Eck, LLP is a nationally recognized leader in shareholder rights law. The firm represents individual investors in shareholder derivative lawsuits, and members of the firm have helped shareholders recover more than $1 billion of value for themselves and the companies in which they have invested.
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