On January 5, 2024, Assertio Holdings Inc’s stocks crashed after the news broke out that its President and CEO, Daniel Peisert, was asked to step down. The company has made it very clear that his termination was not voluntary. However, his termination was just one of a series of events that led to the culmination and the crash of its stocks and the loss to thousands of its investors.
Post the sacking of the President and CEO Daniel Peisert, shareholders filed a class action lawsuit representing the people who had bought the shares of Assertio Holdings Inc. (NASDAQ: ASRT) between March 9, 2023, and November 8, 2023. The investors who had invested during this period faced the brunt of the effects of the crash. For those who are unaware, Assertio is a commercial pharmacy company that offers different products to patients using a non-personal promotional model. However, the class action did not link the departure of the President and CEO Daniel Peisert to any fraud.
The class action lawsuit has indicted Assertio on several counts, which include:
- The undue reliance on the drug Indocin was not sustainable because of stiff competition from cheap generic brands.
- The company misled investors when it acquired Spectrum, which was of much lower value than what was told to the investors.
- The company stated inflated profits that it would accrue due to the Spectrum acquisition and Indocin sales.
Trouble started when the FDA granted Zydus Lifesciences three-month Competitive Generic Therapies exclusivity to market 50 mg indomethacin suppositories, a generic version of Assertio’s Indocin suppositories. Worse, Assertio withdrew its 2023 financial outlook, and the stock prices tanked by more than 45%. On Nov. 8, 2023, Assertio released third-quarter financial results, which were very bleak.
Hagens Berman Probes Assertio Holdings Inc
Reed Kathrein, the Hagens Berman partner leading the firm’s investigation, said that it is investigating the course of events that led to Peisert’s involuntary termination and if any fraud was involved. The firm has also asked investors to submit details of the losses they accrued and assist in the investigation. The firm has also asked whistleblowers to share information about the Assertio Holdings Inc stock crash and assist in the investigation.
Hagens Berman is a nonprofit litigation law firm focusing on corporate accountability through class-action law and looks after the rights of workers, consumers, and others who have incurred financial loss due to corporate negligence and fraudulent practices.
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