Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Catalent, Inc. (NYSE: CTLT) securities between August 30, 2021 and October 31, 2022, both dates inclusive (the “Class Period”) have until April 25, 2023 to seek appointment as lead plaintiff in the Catalent class action lawsuit. Captioned City of Warwick Retirement System v. Catalent, Inc., No. 23-cv-01108 (D.N.J.), the Catalent class action lawsuit charges Catalent and certain of Catalent’s current and former top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Catalent class action lawsuit, please provide your information here:
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CASE ALLEGATIONS: Catalent is a multinational corporation that manufactures and packages drugs into delivery devices fit for human consumption pursuant to long-term supply contracts with pharmaceutical companies.
The Catalent class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Catalent materially overstated its revenue and earnings by prematurely recognizing revenue in violation of U.S. Generally Accepted Accounting Principles (“GAAP”); (ii) Catalent had material weaknesses in its internal controls over financial reporting related to revenue recognition; (iii) Catalent falsely represented demand for its products while it knowingly sold more products to its direct customers than could be sold to healthcare providers and end consumers; and (iv) Catalent disregarded regulatory rules at key production facilities in order to rapidly produce excess inventory that was used to pad Catalent’s financial results through premature revenue recognition in violation of GAAP and/or stuffing its direct customers with excess inventory.
On August 29, 2022, Catalent disclosed that demand for its COVID-related products was facing substantial headwinds. On this news, the price of Catalent’s stock price declined more than 7%.
Then, on September 20, 2022, the Washington Post reported that the release of COVID-19 vaccines produced by Catalent had been delayed by regulators because of improper sterilization at one of Catalent’s key facilities. On this news, Catalent’s stock price declined by more than 9%.
Finally, on November 1, 2022, Catalent revealed that its quarterly earnings had declined to zero and Catalent lowered its financial guidance, indicating falling demand. Catalent also disclosed that regulatory issues at its key facilities were negatively impacting its financial results. On this news, Catalent stock declined by more than 31%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Catalent securities during the Class Period to seek appointment as lead plaintiff in the Catalent class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Catalent class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Catalent class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Catalent class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world, and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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