Perrigo(US:PRGO) Globenewswire·2025-12-06 14:50Core 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]. Summary by Sections Class Action Details - The class action lawsuit is titled French v. Perrigo Company plc, and it 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][2]. Acquisition and Allegations - Perrigo acquired Nestlé's Gateway infant formula plant for $170 million in November 2022, along with rights to the Good Start® brand [2]. - Allegations include significant underinvestment in the acquired infant formula business, necessitating higher-than-expected capital expenditures for remediation [3]. Financial Disclosures and Stock Impact - On February 27, 2024, Perrigo disclosed acquisition-related charges of $35 million to $45 million for remediation, 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% stock price drop [5]. - On August 6, 2025, adjusted gross profit decreased by $30 million (6.9%), with a reported gross margin of 34.4%, causing a stock price decline of more than 11% [6]. - On November 5, 2025, Perrigo announced a strategic review of its infant formula business, slashing its fiscal year 2025 outlook, which led to a stock price drop of over 25% [7].