Perrigo(US:PRGO) Newsfile·2025-12-01 10:45Core 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]. Group 1: Class Action Details - The class action lawsuit is titled French v. Perrigo Company plc and covers securities purchases made between February 27, 2023, and November 4, 2025, with a deadline for lead plaintiff applications set for January 16, 2026 [1][8]. - The lawsuit alleges that Perrigo's acquisition of Nestlé's Gateway infant formula plant for $170 million was marred by significant underinvestment and operational deficiencies [2][3]. Group 2: Financial Implications - On February 27, 2024, Perrigo disclosed acquisition-related charges of $35 million to $45 million for remediation efforts, alongside a 50% decline in earnings per share compared to the previous year, leading to a stock price drop of 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, Perrigo's 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, slashing its fiscal year 2025 outlook, which included a negative sales growth guidance of -2.5% to -3% and a significant cut in expected earnings per share, leading to a stock price drop of over 25% [7].