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The Law Offices of Frank R. Cruz Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Eagle Pharmaceuticals, Inc. (EGRX)

By: The Law Offices of Frank R. Cruz via Business Wire

February 08, 2024 at 15:00 PM EST

The Law Offices of Frank R. Cruz reminds investors of the upcoming February 9, 2024 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired Eagle Pharmaceuticals, Inc. (“Eagle Pharmaceuticals” or the “Company”) (NASDAQ: EGRX) securities between August 8, 2023 and November 28, 2023, inclusive (the “Class Period”).

If you are a shareholder who suffered a loss, click here to participate.

On November 9, 2023, before the market opened, Eagle Pharmaceuticals announced that it would not release its third quarter 2023 results that day (as had been expected) because the Company “requires more time to review potential adjustments relating to the reporting of sales of PEMFEXY® prior to filing its Form 10-Q.” The Company also disclosed it “expects to revise its previously disclosed 2023 full year guidance downward.” On this news, the Company’s stock price fell $4.16, or 30.4%, to close at $9.54 per share on November 9, 2023, on unusually heavy trading volume.

After the market closed on November 9, 2023, the Company also disclosed that it was reviewing “potential adjustments to reserves for returns and price adjustments of approximately $15.0 million to $20.0 million.” These amounts relate “to returns and a price adjustment for PEMFEXY stemming from slower-than-anticipated pull-through from a wholesale customer predominantly due to expiry of inventory.” On this news, the Company’s stock price fell $0.27, or 2.8%, to close at $9.27 per share on November 10, 2023, on unusually heavy trading volume.

Then, on November 29, 2023, before the market opened, Eagle Pharmaceuticals disclosed that Scott Tarriff, the Company’s President and Chief Executive Officer resigned. The Company’s board of directors accepted the resignation “[a]fter consideration of various alternatives, including termination with or without cause.” On this news, the Company’s stock price fell $2.55, or 31%, to close at $5.68 per share on November 29, 2023, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company was experiencing slower-than-anticipated pull-though from a wholesale customer predominantly due to expiry of inventory; (2) that, as a result, the Company had overstated its revenue; (3) that the Company did not have effective internal controls and procedures over financial reporting as to PEMFEXY sales; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you purchased or otherwise acquired Eagle Pharmaceuticals securities during the Class Period, you may move the Court no later than February 9, 2024 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.