On August 3, 2023, Zydus Lifesciences Limited received approval from the U.S. Food and Drug Administration (“FDA”) to manufacture and market a generic version of Indocin. That same day, Assertio issued a press release announcing its Q2 2023 financial results and “withdrawing its 2023 financial outlook to assess the recent news of a generic indomethacin suppository approved by the [FDA].”

Following this news, Assertio’s stock price fell $2.44 per share, or 45.6%, to close at $2.91 per share on August 4, 2023.

Then, on November 8, 2023, Assertio issued a press release announcing its Q3 2023 financial results. Among other results, Assertio reported Q3 non-GAAP earnings-per-share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million. In addition, the press release stated, in part, “Our third quarter results were disappointing, with the loss of Indocin exclusivity and Rolvedon results below expectations driving significant charges to our net income.”

Following this news, Assertio’s stock price fell $0.92 per share, or 43.19%, to close at $1.21 per share on November 9, 2023.

According to the complaint and throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (1) Assertio’s reliance on Indocin products to boost its net income was unsustainable given the risk of generic competition; (ii) the Spectrum Acquisition was less valuable than Assertio had represented to investors; and (iii) accordingly, Assertio had overstated the positive impact the sale of Indocin products and the Spectrum Acquisition were likely to have on Assertio’s profitability.

Investors who purchased or acquired Assertio Holdings securities between March 9, 2023 and November 8, 2023, may no later than March 5, 2024, seek to be appointed as a lead plaintiff representative of the class.