Diplomat Pharmacy Inc (NYSE: DPLO) Investor Securities Class Action Lawsuit 02/24/2019

If you purchased a significant amount of shares of Diplomat Pharmacy Inc (NYSE: DPLO) between February 26, 2018 through February 21, 2019, and / or if you purchased any NYSE: DPLO shares prior to February 2018 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2019. NYSE: DPLO investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Diplomat Pharmacy
Case Name: 
Diplomat Pharmacy Shareholder Class Action Lawsuit 02/24/2019
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: DPLO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/24/2019
Class Period Begin: 
02/26/2018
Class Period End: 
02/21/2019
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
04/25/2019
Summary: 

An investor in shares of Diplomat Pharmacy Inc (NYSE: DPLO) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Diplomat Pharmacy Inc in connection with certain allegedly false and misleading statements made between February 26, 2018 through February 21, 2019.

On February 22, 2019, Diplomat Pharmacy Inc announced it would be postponing the release of its fourth quarter and full-year 2018 financial results because it will need to record a non-cash impairment charge related to its PBM business. More specifically, Diplomat Pharmacy Inc disclosed the “charge is expected to be equal to a significant portion of the PBM’s Goodwill and Definite-lived intangible assets, which total approximately $630 million as of December 31, 2018, prior to impairment charges.”Diplomat Pharmacy Inc also withdrew its preliminary 2019 full-year outlook provided in January.

Shares of Diplomat Pharmacy Inc (NYSE: DPLO) declined from $28.74 per share in June 2018 to as low as $5.56 per share in February 22, 2019.

According to the complaint the plaintiff alleges on behalf of purchasers of Diplomat Pharmacy Inc (NYSE: DPLO) common shares between February 26, 2018 through February 21, 2019, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between February 26, 2018 through February 21, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Diplomat Pharmacy Inc had downplayed its success in integrating and growing its PBM business, which included LDI Integrated and National Pharmaceutical, two companies Diplomat had acquired in late 2017, that consequently, Diplomat Pharmacy Inc would need to record a non-cash impairment charge upwards of approximately $630 million relating to its PBM business and these 2017 acquisitions, that due to the foregoing, Diplomat Pharmacy Inc would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior, and that as a result, defendants’ statements about Diplomat’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.