Securities Class Action Filed Against Lannett Company, CEO, CFO

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A class action filed against pharmaceutical outfit Lannett Company and its CEO and CFO claims the parties violated federal securities law by making materially false and misleading statements with regard to digoxin, a heart failure and rhythm drug. On July 16, 2014, the defendants received a subpoena from the Connecticut Attorney General investigating whether Lannett, as well as a flock of other big-pharma companies, engaged in any price-fixing or other anti-trust violations in connection with digoxin and other generic medications. Upon the publication of this news, Lannett stock prices sunk roughly 22 percent. When news later came out of a federal investigation into the generic pharmaceutical industry as a whole—which was then followed by the bombshell announcement in November 2016 that the Department of Justice may file criminal charges—Lannett share prices bottomed out even further, prompting the filing of the class action by securities holders.