Assertio Holdings, Inc. (ASRT) Shareholder Alert: Robbins LLP Reminds Investors of Class Action Filed Against Assertio Holdings, Inc.

SAN DIEGO--(BUSINESS WIRE)--Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Assertio Holdings, Inc. (NASDAQ: ASRT) between March 9, 2023 and November 8, 2023. Assertio is a commercial pharmaceutical company that purportedly offers differentiated products to patients utilizing a non-personal promotional model.

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What is this Case About: Assertio Holdings, Inc. (ASRT) Allegedly Misled Investors Regarding its Reliance on Indocin and Integration of Spectrum Pharmaceuticals, Inc.

According to the complaint, one of the Company’s primary pharmaceutical products is Indocin, an oral and suppository solution for the treatment of moderate to severe rheumatoid arthritis.

In July 2023, Assertio acquired Spectrum Pharmaceuticals, Inc., a biopharmaceutical company focused on novel and targeted oncology, along with Spectrum’s injection asset Rolvedon.

Throughout the class period, defendants failed to disclose that the Company’s reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition and the Spectrum Acquisition was less valuable than Assertio had represented to investors. As a result, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on the Company’s profitability.

On August 3, 2023, the FDA granted Zydus Lifesciences Limited, a generic pharmaceutical company, 180-day Competitive Generic Therapies exclusivity to market 50mg indomethacin suppositories, the generic version of the Company’s Indocin Suppositories. Following the FDA’s decision, Assertio withdrew its 2023 financial outlook previously issued in May 2023. On this news, Assertio’s stock price fell $2.44 per share, or 45.6%, to close at $2.91 per share on August 4, 2023.

Then, on November 8, 2023, Assertio issued a press release announcing its financial results for its third quarter (“Q3”) of 2023. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million. Defendant Peisert noted that “the loss of Indocin exclusivity and Rolvedon results below expectations [drove] significant charges to our net income” and that the Company was “learning” that “certain aspects” of its July 31, 2023 acquisition of Spectrum Pharmaceuticals Inc. “may not be everything we initially expected.” On this news, Assertio’s stock price fell $0.92 per share, or 43.19%, to close at $1.21 per share on November 9, 2023.

What Now: Similarly situated shareholders may be eligible to participate in the class action against Assertio Holdings, Inc. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. Plaintiffs must file their lead plaintiff papers by March 5, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: Some law firms issuing releases about this matter do not actually litigate securities class actions; Robbins LLP does. A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. Since our inception, we have obtained over $1 billion for shareholders.

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