|Company name||Reckitt Benckiser Group Plc|
NEW YORK, September 3, 2019 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of all investors that purchased Reckitt Benkiser Group, Plc (NYSE: RBGLY) securities between July 28, 2014 and April 9, 2019 (the “Class Period”). Investors have until September 13, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint charges Reckitt and certain of its current and former officers and directors with violations of the Securities Exchange Act of 1934. As a result of defendants’ false and misleading statements and/or omissions regarding the scheme to inflate sales of Suboxone Film during the Class Period, Reckitt ADSs traded at artificially inflated prices. The truth began to emerge on July 24, 2017, when the Company announced, in connection with its second quarter 2017 financial results, that it had recorded a $318 million charge related to ongoing U.S. Department of Justice and U.S. Federal Trade Commission investigations into its former Reckitt Pharma operations. On this news, the price of Reckitt ADSs dropped 5%.
Then, on February 19, 2018, Reckitt announced, in connection with its full year 2017 financial results, that it had recorded an exceptional charge of $296 million due to the investigations, and that the investigations now also involved the California Department of Insurance. On this news, the price of Reckitt ADSs declined more than 10%.
Finally, on April 9, 2019, the DOJ filed a criminal indictment against Reckitt Pharma (now known as Indivior), which detailed a multi-billion-dollar scheme to defraud the public and the Company’s investors through the marketing and sale of Suboxone Film. On this news, the price of Reckitt ADSs again declined over 6%. Ultimately, Reckitt agreed to settle the federal investigations into its marketing and sale of Suboxone Film for $1.4 billion. At the time, the settlement was called the “largest opioid settlement in US history.”
If you purchased Reckitt Benkiser securities during the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.