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Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against AbbVie Inc. (ABBV)

September 25, 2018

NEW YORK, Sept. 24, 2018 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against AbbVie Inc. (“AbbVie” or the “Company”) (NYSE: ABBV) in the United States District Court for the Central District of California on behalf of a class consisting of investors who purchased or otherwise acquired AbbVie securities between October 25, 2013 through September 18, 2018, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ alleged 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.

According to the Complaint, throughout the Class Period Defendants made false and/or misleading statements and/or failed to disclose that: (1) AbbVie’s strategy to increase the sales growth of its blockbuster drug, HUMIRA, was through illegal kickbacks and unlawful sales and marketing tactics; (2) such practices would lead to heightened scrutiny by State governments and agencies; and (3) as a result, Defendants’ public statements were materially false and misleading at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.

The Complaint also alleges that on September 18, 2018, Bloomberg reported that “California’s insurance regulator is suing AbbVie Inc., alleging that the pharmaceutical giant gave illegal kickbacks to health-care providers in order to keep patients on its blockbuster rheumatoid arthritis drug Humira.” The report further stated that, according to the California Department of Insurance, “[t]he company ‘engaged in a far-reaching scheme including both classic kickbacks — cash, meals, drinks, gifts, trips, and patient referrals — and more sophisticated ones — free and valuable professional goods and services to physicians to induce and reward Humira prescriptions.’”

On this news, AbbVie stock fell $4.35 per share, or over 4.5%, over two consecutive trading days to close at $91.02 per share on September 19, 2018, damaging investors.

Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the November 20, 2018 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.

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