A corporation’s management may misrepresent the condition of its product(s) or production facilities in order to falsely inflate the value of its stock. But when the true conditions are revealed, it may result in a significant decline in stock price.
City of Sterling Heights General Employees' Retirement System v. Hospira, Inc. et al.,
On Aug. 7, 2014, the U.S. District Court for the Northern District of Illinois approved a final settlement of $60 million and dismissed with prejudice, meaning that the defendant could not appeal the decision or take any other action, in the case City of Sterling Heights General Employees’ Retirement System v. Hospira, Inc.
In this lawsuit, plaintiffs alleged that Hospira—the world’s largest manufacturer of generic injectable pharmaceuticals—and certain of its executive officers engaged in a fraudulent scheme to artificially inflate the company’s stock price by concealing significant deteriorating conditions, manufacturing and quality control deficiencies at its largest manufacturing facility located in Rocky Mount, North Carolina, as well as the costly effects of these deficiencies on production capacity. These deteriorating conditions resulted in a series of regulatory actions by the FDA, which the defendants allegedly misrepresented to their investors.
Motley Rice served as co-lead counsel in the case, City of Sterling Heights General Employees' Retirement System v. Hospira, Inc. et al., No. 1:11-cv-08332 (N.D. Ill.).
If you have questions regarding cases similar to the City of Sterling Heights General Employees' Retirement System v. Hospira, Inc. settlement or if you would like to discuss a potential case, contact securities attorney Jim Hughes by email or call 1.800.768.4026.
*Prior results do not guarantee a similar outcome.