AP NEWS
This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.
PRESS RELEASE from provider: Globe Newswire
This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Diplomat Pharmacy, Inc. (DPLO)

February 25, 2019

NEW YORK, Feb. 25, 2019 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Diplomat Pharmacy, Inc. (“Diplomat Pharmacy” or the “Company”) (NYSE: DPLO) in the United States District Court for the Central District of California on behalf of those who purchased or acquired the securities of Diplomat Pharmacy between February 26, 2018 through February 21, 2019, inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder.

The Complaint alleges Defendants made false and/or misleading statements and/or failed to disclose that: (1) Diplomat Pharmacy 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; (2) consequently, Diplomat Pharmacy would need to record a non-cash impairment charge upwards of approximately $630 million relating to its PBM business and these 2017 acquisitions; (3) due to the foregoing, Diplomat Pharmacy would withdraw its preliminary 2019 full-year outlook issued less than seven weeks prior; and (4) as a result, Defendants’ statements about Diplomat Pharmacy’s business, operations and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the April 25, 2019 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.