Perrigo(US:PRGO) Businesswire·2025-11-19 17:06Core Viewpoint - A class action lawsuit has been filed against Perrigo Company plc for alleged securities fraud, impacting shareholders who purchased securities between February 27, 2023, and November 4, 2025 [1][11]. Group 1: Company Actions and Financial Performance - In November 2022, Perrigo acquired Nestlé's Gateway infant formula plant and the rights to the Good Start infant formula brand for $170 million [3]. - On February 27, 2024, Perrigo reported fiscal year 2023 earnings, revealing acquisition-related charges of $35 million to $45 million for remediation in the infant formula business, leading to a 50% decline in earnings per share compared to the previous year [4]. - Following this announcement, Perrigo's share price fell by $4.87, or 15.14%, closing at $27.30 on February 27, 2024 [5]. - On May 7, 2024, Perrigo reported a 34.5% decrease in net sales to $91 million and a decline in gross margin by 90 basis points, while maintaining that cash costs for remediation would remain flat at $35 to $45 million [6]. - The share price dropped by $3.28, or 9.8%, to close at $30.15 on May 7, 2024 [7]. - On August 6, 2025, Perrigo announced scrapping approximately $11 million of inventory due to production issues, with the CFO stating that recovery in the infant formula business was progressing [8]. - The share price fell by $3.01, or 11.31%, to close at $23.61 on August 6, 2025 [8]. - On November 5, 2025, Perrigo initiated a strategic review of its infant formula business and cut its fiscal year 2025 outlook, revising net sales growth guidance to -2.5% to -3% from a previous expectation of 0% to 3% [9]. - The stock price plummeted by $5.09, or 25.2%, to close at $15.10 on November 5, 2025 [10]. Group 2: Allegations in the Lawsuit - The lawsuit alleges that Perrigo made materially false and misleading statements and failed to disclose adverse facts about its business and operations, including significant underinvestment in the acquired infant formula business and the need for substantial capital expenditures for remediation [11]. - It is claimed that manufacturing deficiencies in the infant formula facility led to overstated financial results, including earnings and cash flow, and that positive statements made by the company lacked a reasonable basis [11].