Perrigo(US:PRGO) Globenewswire·2025-11-19 11:00Core 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 financial health of its infant formula business acquired from Nestlé [1][3]. Company Overview - Perrigo provides over-the-counter health and wellness solutions and acquired Nestlé's Gateway infant formula plant and the rights to the Good Start® brand for $170 million in November 2022 [2]. Allegations of Misleading Statements - The lawsuit alleges that Perrigo failed to disclose significant underinvestment in the acquired infant formula business, which required substantial capital expenditures beyond initial estimates to address operational deficiencies [3]. - Specific allegations include manufacturing deficiencies and overstated financial results, including earnings and cash flow [3]. 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 [4]. - Following this announcement, Perrigo's stock price fell over 15% [4]. - On May 7, 2024, Perrigo reported net sales of $91 million, a decrease of 34.5%, and a gross margin decline of 90 basis points, resulting in a nearly 10% drop in stock price [5]. - On August 6, 2025, adjusted gross profit decreased by $30 million (6.9%), with a reported gross margin of 34.4%, causing an over 11% decline in stock price [6]. - On November 5, 2025, Perrigo announced a strategic review of its infant formula business and slashed its fiscal year 2025 outlook, leading to a more than 25% drop in stock price [7]. Legal Process - Investors who purchased Perrigo securities during the class period can seek appointment as lead plaintiff in the lawsuit, which allows them to act on behalf of other class members [8][9].