NEW YORK, May 22, 2019 /PRNewswire/ -- Wolf Popper LLP is investigating potential securities fraud claims on behalf of purchasers of Mallinckrodt plc (MNK) common stock from April 13, 2016 through May 21, 2019.
Before the market opened on May 21, 2019, Mallinckrodt announced it had filed a lawsuit against the Centers for Medicare & Medicaid Services and the Department of Health and Human Services relating to a determination by those agencies (going back to April 2016) that changed the calculation of Medicaid drug rebates for Acthar Gel. Mallinckrodt said this would "substantially eliminate" the approximately 10% of Acthar Gel's net sales that come from Medicaid. On this news, Mallinckrodt's stock price crashed $3.16 per share to an all-time low of $9.87.
According to a Bloomberg news report, one stock analyst commented that, "'The timing of this disclosure is potentially problematic' as the company doesn't seem to have warned investors of this risk despite its disagreement with the government dating back to 2016."
Previously, on April 30, 2019, a CNN news story detailed how two whistleblowers alleged in a lawsuit that Mallinckrodt's predecessor had bribed doctors to buy Acthar Gel and was cheating the government out of millions of dollars. On this news, Mallinkrodt's stock price fell $2.86 per share to $15.46.
Mallinckrodt has seen roughly $2.2 billion wiped from its market value since August 2018.
Mallinckrodt investors should contact Andrew Lencyk at (212) 759-4600 or (877) 370-7703 or at firstname.lastname@example.org.
Wolf Popper has successfully recovered billions of dollars for defrauded investors. The firm's reputation and expertise have been repeatedly recognized by the courts, which have appointed the firm to major positions in securities litigation. See www.wolfpopper.com.
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Wolf Popper LLP
Andrew E. Lencyk
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New York, NY 10022
Tel.: (212) 759-4600
Tel.: (877) 370-7703
Fax: (877) 370-7704