The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Diplomat Pharmacy, Inc. (Diplomat or the Company) (NYSE: DPLO) securities during the period from February 26, 2018 through February 21, 2019 (the Class Period). Investors have until April 25, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that Diplomat made materially false and misleading statements and/or failed to disclose that: (i) Diplomat 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; (ii) consequently, Diplomat would need to record a non-cash impairment charge upwards of approximately $630 million relating to its PBM business and these 2017 acquisitions; and (iii) due to the foregoing, Diplomat would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior.
On February 22, 2019, Diplomat revealed that it would be postponing its fourth quarter and full-year 2018 financial results since it needed to record a non-cash impairment charge in connection with its PBM business. Diplomat also renounced its preliminary 2019 full-year outlook from January.
On this news, Diplomats share price fell $7.59 per share, more than 56%, to close at $5.87 on February 22, 2019.
If you acquired Diplomat securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs law firm concentrating in securities, antitrust, and whistleblower litigation. The firms efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerneys website: www.kmllp.com.
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