The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Pennsylvania on behalf of those who acquired Mylan N.V. (“Mylan” or the “Company”) (NASDAQ: MYL) securities during the period from February 16, 2016 through May 7, 2019. Investors have until August 25, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Mylan’s revenue increases and profitability were being artificially buoyed by the Company’s unscrupulous and illegal conduct of intentionally skirting and ignoring FDA CGMPs; (ii) through Mylan’s scheme to corrupt quality control data files, Mylan bypassed countless expensive and time-consuming quality control tests, allowing the Company to increase its output and decrease costs; (iii) instead of working to remedy the FDA’s concerns, insiders reported that Mylan was actively trying to deceive the FDA and by creating a “façade of documents;” (iv) the FDA’s investigation into the Morgantown plant was the result of whistleblower allegations, and not, as Mylan insinuated, the result of a “regular” inspection; and (v) as a result of Mylan’s continued efforts to remain uncooperative with the FDA, the Morgantown plant would continue to incur substantial setbacks.
On November 9, 2018, the FDA issued a formal warning letter concerning “significant violations of current good manufacturing practice[s]” at Mylan’s Morgantown plant, and reporting that products at the plant were “adulterated.” On this news, Mylan’s share price fell $1.01, or 2.7%, to close at $35.94 per share.
On February 26, 2019, Mylan stunned investors when the Company announced an 18% decrease in net sales from the prior year, attributing this shortfall, in part, to its Morgantown restructuring, which included the discontinuation of almost 250 products. On this news, Mylan’s share price fell $4.61, or 15.1%, to close at $26.01 per share.
Finally, on May 7, 2019, Mylan reported a surprise loss for the first quarter of 2019 due, in part, to additional costs associated with the Morgantown restructuring. Mylan reported that its revenues and earnings-per-share were down year-over-year by 7% and 15%, respectively, as Mylan discontinued manufacturing certain products in the Morgantown facility, and that its quarterly adjusted free cash flow was severely lacking, now matching its 2015 levels. On this news, Mylan’s share price fell $6.73, or 23.8%, to close at $21.53 per share.
If you acquired Mylan securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.