Core 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 misled investors regarding its financial health and the state of its acquired infant formula business [1][3]. Group 1: Class Action Details - The class action lawsuit is titled French v. Perrigo Company plc and covers securities purchased 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]. - The lawsuit alleges that Perrigo and its executives made false statements and failed to disclose critical issues regarding the infant formula business acquired from Nestlé [3]. Group 2: Allegations Against Perrigo - The complaint states that the acquired infant formula business suffered from significant underinvestment, requiring substantial capital expenditures beyond initial estimates [3]. - Manufacturing deficiencies were reported in the facility, leading to overstated financial results, including earnings and cash flow [3]. - On February 27, 2024, Perrigo disclosed additional costs of $35 million to $45 million for remediation, resulting in a 50% decline in earnings per share compared to the previous year [4]. Group 3: Financial Impact - On May 7, 2024, Perrigo reported net sales of $91 million, a decrease of 34.5%, attributed to lower shipments as the company addressed remediation plans [5]. - The gross margin fell to 36.5%, a decline of 90 basis points, with a significant impact from the infant formula business [5]. - On August 6, 2025, Perrigo's adjusted gross profit decreased by $30 million, or 6.9%, with a reported gross margin of 34.4%, down 260 basis points [6]. Group 4: Strategic Review and Outlook - On November 5, 2025, Perrigo announced a strategic review of its infant formula business and reassessed its previously announced investment of $240 million [7]. - The company slashed its fiscal year 2025 outlook, projecting net sales growth of -2.5% to -3%, down from an expected 0% to 3% [7]. - Expected adjusted diluted earnings per share were revised to a range of $2.70 to $2.80, significantly lower than the previous range of $2.90 to $3.10 [7].

Core Viewpoint - The article discusses a class action lawsuit against Perrigo Company plc, alleging violations of the Securities Exchange Act of 1934 due to misleading statements and undisclosed issues related to its acquisition of Nestlé's infant formula business [1][2]. Company Overview - Perrigo Company plc is involved in providing over-the-counter health and wellness solutions [1]. - The company acquired Nestlé's Gateway infant formula plant and the rights to the Good Start® brand for $170 million in November 2022 [1]. Allegations and Financial Impact - The lawsuit claims that Perrigo's executives made false statements regarding the condition of the acquired infant formula business, which suffered from underinvestment and significant operational deficiencies [1]. - On February 27, 2024, Perrigo disclosed additional costs of $35 million to $45 million for remediation, leading to a 50% decline in earnings per share compared to the previous year [1]. - Following further disclosures, Perrigo's stock price fell over 15% on February 27, 2024, nearly 10% on May 7, 2024, and more than 11% on August 6, 2025, due to ongoing issues with the infant formula business [1]. - On November 5, 2025, Perrigo announced a strategic review of its infant formula business and revised its fiscal year 2025 outlook, resulting in a stock price drop of over 25% [1]. Legal Process - Investors who purchased Perrigo securities during the class period (February 27, 2023, to November 4, 2025) can seek appointment as lead plaintiff in the class action lawsuit [1]. - The lead plaintiff will represent the interests of all class members and can select a law firm to litigate the case [1].