Perrigo(US:PRGO) Prnewswire·2025-11-18 22:31Core Viewpoint - The Perrigo Company plc is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, with claims that the company and its executives made misleading statements regarding the acquisition and performance of its infant formula business [1][4]. Group 1: Class Action Lawsuit Details - The class action lawsuit is titled French v. Perrigo Company plc and covers securities purchased between February 27, 2023, and November 4, 2025, with a deadline of January 16, 2026, for potential lead plaintiffs to come forward [1]. - The lawsuit alleges that Perrigo's acquisition of Nestlé's Gateway infant formula plant for $170 million was plagued by significant underinvestment and operational deficiencies [3][4]. - Specific allegations include the need for substantial capital expenditures beyond initial estimates, significant manufacturing deficiencies, and overstated financial results [4]. Group 2: Financial Impact and Stock Performance - On February 27, 2024, Perrigo disclosed acquisition-related charges of $35 million to $45 million for remediation efforts, leading to a 50% decline in earnings per share compared to the previous year [5]. - Following a report on May 7, 2024, net sales dropped to $91 million, a decrease of 34.5%, attributed to lower shipments during remediation efforts, causing a nearly 10% drop in stock price [6]. - On August 6, 2025, Perrigo reported a $30 million decrease in adjusted gross profit, a 6.9% decline, and a gross margin drop to 34.4%, resulting in an over 11% decline in stock price [7]. - On November 5, 2025, Perrigo announced a strategic review of its infant formula business, slashing its fiscal year 2025 outlook, which led to a more than 25% drop in stock price [8].