Perrigo(US:PRGO) Globenewswire·2025-12-15 12:20Core 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 Lawsuit 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 [1]. - Investors have until January 16, 2026, to seek appointment as lead plaintiff in the lawsuit [1]. Allegations Against Perrigo - The lawsuit alleges that Perrigo's acquisition of Nestlé's Gateway infant formula plant was plagued by significant underinvestment and operational deficiencies [3]. - Specific claims include the need for substantial capital expenditures beyond initial estimates to address these issues, leading to overstated financial results [3]. Financial Impact and Stock Performance - On February 27, 2024, Perrigo disclosed acquisition-related charges of $35 million to $45 million for remediation efforts, resulting in 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, leading to 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 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, resulting in a stock price drop of over 25% [7]. Company Background - Perrigo provides over-the-counter health and wellness solutions and has been involved in significant acquisitions to expand its product offerings [2].