Pomerantz LLP announces that a class action lawsuit has been filed against Depomed, Inc. ("Depomed" or the "Company") and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 17-cv-04830, is on behalf of a class consisting of investors who purchased or otherwise acquired Depomed securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
Depomed, a specialty pharmaceutical company, engages in the development, sale, and licensing of products for pain and other central nervous system conditions in the United States. Among other drugs, Depomed's portfolio includes the opioids Nucynta (tapentadol) and Lazanda (fentanyl)
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Depomed engaged in questionable practices in connection with the sales and marketing of the Company's opioid products; (ii) the foregoing conduct, when it became known, would likely subject the Company to heightened legal and regulatory scrutiny; and (iii) as a result, Depomed's public statements were materially false and misleading at all relevant times.
On August 7, 2017, post-market, Depomed disclosed that the Company "recently received a request for information from the ranking minority member of the United States Senate Committee on Homeland Security and Governmental Affairs related to the promotion of opioids" and that Depomed had also received "subpoenas related to opioid sales and marketing from the Office of the Attorney General of Maryland and the United States Department of Justice."
On this news, Depomed's share price fell $3.09, or 33.42%, to close at $6.15 on August 8, 2017.