Scott+Scott Attorneys at Law LLP (Scott+Scott), a national securities and consumer rights litigation firm, is notifying investors that class action lawsuits have been filed against Diplomat Pharmacy, Inc. (Diplomat or the Company) (NYSE: DPLO), and certain other defendants, related to alleged violations of federal securities laws. If you purchased Diplomat common stock between February 26, 2018 and February 21, 2019, you are encouraged to contact a Scott+Scott attorney at (844) 818-6980 for more information.
Diplomat operates as an independent specialty pharmacy in the United States. In late 2017, the Company entered the pharmacy benefit management (PBM) business through its December 2017 acquisition of LDI Holding Company, LLC, doing business as LDI Integrated Pharmacy Services (LDI Integrated), and its November 2017 acquisition of Pharmaceutical Technologies, Inc., doing business as National Pharmaceutical Services (National Pharmaceutical).
The complaints allege that, throughout the Class Period, defendants made false and/or 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; (iii) due to the foregoing, Diplomat would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior; and (iv) as a result, Defendants statements about Diplomats business, operations and prospects were materially false and misleading and/or lacked a reasonable basis.
On February 22, 2019, Diplomat filed a Form 8-K with the SEC, announcing it was postponing the release of its Form 10-K for the fiscal year ended December 31, 2018, due to a recent determination that it would need to record a non-cash impairment charge upwards of approximately $630 million relating to 2017 acquisitions for its PBM business. Diplomat also disclosed that it was withdrawing its preliminary 2019 full-year outlook provided in January.
On this news, the price of Diplomat shares fell $7.59, over 56%, to close at $5.87 per share on February 22, 2019.
What You Can Do
If you purchased Diplomat stock between February 26, 2018 and February 21, 2019, inclusive, or if you have questions about this notice or your legal rights, please contact attorney Rhiana Swartz at (844) 818-6980 or [email protected]. The lead plaintiff deadline is April 25, 2019.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Connecticut, California, and Ohio.