Diplomat Pharmacy Inc (NYSE: DPLO) Investor Securities Class Action Lawsuit 11/10/2016

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Company Name(s): 
Diplomat Pharmacy
Case Name: 
Diplomat Pharmacy Shareholder Class Action Lawsuit 11/10/2016
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: DPLO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
11/10/2016
Class Period Begin: 
02/29/2016
Class Period End: 
11/03/2016
Court of Filing: 
U.S. District Court for the Eastern District of Michigan
Deadline To File for Lead: 
01/09/2017
Date Settled: 
05/07/2019
Settlement Amount: 
$14,100,000
Deadline to Participate in Settlement: 
09/23/2019
Settlement Notice: 
Settlement Proof: 
Summary: 

May 7, 2019 - The court preliminarily approved the settlement.

April 22, 2019 - Parties filed a stipulation of settlement.

January 19, 2018 - The court denied defendants' motion to dismiss.

May 26, 2017 - Defendants filed a motion to dismiss.

April 11, 2017 - The lead plaintiffs filed an amended complaint on behalf of investors who purchased Diplomat Pharmacy Inc (NYSE: DPLO) common shares between February 29, 2016 and November 3, 2016. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 29, 2016 and November 3, 2016.

February 10, 2017 - Lead plaintiffs and lead counsel were appointed.

January 9, 2017 - Lead plaintiff motions were filed.

November 10, 2016 - An investor in shares of Diplomat Pharmacy Inc (NYSE: DPLO) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan over alleged violations of Federal Securities Laws by Diplomat Pharmacy Inc in connection with certain allegedly false and misleading statements made between October 9, 2014 and November 2, 2016.

According to the complaint the plaintiff alleges on behalf of purchasers of Diplomat Pharmacy Inc (NYSE: DPLO) common shares between October 9, 2014 and November 2, 2016, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between October 9, 2014 and November 2, 2016 the defendants made false and/or misleading statements and/or failed to disclose that Diplomat Pharmacy Inc lacked adequate internal controls over its financial reporting, that as a result Diplomat Pharmacy Inc could not adequately calculate DIR fees, that the Company’s hepatitis C segment was not performing as previously disclosed to investors, that and therefore, Diplomat Pharmacy Inc had overstated its full-year 2016 guidance, and that that, as a result of the foregoing, defendants’ statements about Diplomat Pharmacy Inc’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

Diplomat Pharmacy Inc reported that its annual Total Revenue rose from over $1.51 billion in 2013 to over $3.36 billion in 2015 and that its Net loss of $26.12 million in 2013 turned into a Net Income of $25.78 million in 2015.

On November 2, 2016, Diplomat Pharmacy Inc reported third quarter 2016 results. Diplomat Pharmacy Inc also lowered full year 2016 guidance, with the CEO and Chairman commenting, “We are disappointed with our third quarter results, which were significantly impacted by the softness in the hepatitis C business nationwide, as well as by DIR fees. The methodology and transparency around how PBMs are applying these DIR fees changed materially in 2016, and while we cannot reverse the impact they had on this quarter, we are working with our partners in the specialty pharmacy industry and with legislators to achieve an amicable solution to this problem.”

Shares of Diplomat Pharmacy Inc (NYSE: DPLO) declined to as low as $12.47 per share on November 4, 2016.

On November 8, 2016, NYSE: DPLO shares closed at $13.73 per share.