Public Employees' Retirement System of Mississippi v. Endo International PLC

Settled: December 5, 2019

With U.S. headquarters in Malvern, Pennsylvania, Endo develops, manufactures, and distributes pharmaceutical products and devices worldwide.  On February 28, 2017, Labaton Sucharow, on behalf of the Public Employees’ Retirement System of Mississippi and the class, filed a securities class action against Endo International plc in the Court of Common Pleas for Chester County, Pennsylvania.  Plaintiff’s claims arise from allegedly material misstatements and omissions made by Defendants in the offering documents issued in connection with Defendants’ secondary public offering of approximately 27,627,628 shares of Endo common stock on June 5, 2015.  Plaintiff alleges that the Offering Documents failed to disclose declining demand for Endo’s generic products, and that personnel in its generic division had resorted to unsustainable business practices to meet sales numbers. When Defendants allegedly revealed the existence of these negative trends and the impact they had on Endo’s finances, the Company’s stock price fell well below the Offering price.

On March 31, 2017, Defendants filed a notice of removal in the U.S. District Court for the Eastern District of Pennsylvania on the ground that the Securities Litigation Uniform Standards Act (“SLUSA”), established exclusive federal jurisdiction over certain class action lawsuits bringing claims under the Securities Act.  On May 1, 2017, Plaintiff filed a motion to remand the case back to the Court, and the motion was granted.

Plaintiff filed its Amended Class Action Complaint on October 16, 2017 and on December 8, 2017, Defendants filed their preliminary objections to the Amended Complaint. The Court overruled Defendants’ preliminary objections to Plaintiff’s Amended Complaint, lifting the prior stay on discovery and discovery proceeded.

The Parties have reached an agreement to settle the Action for $50 million, memorialized in a Stipulation of Settlement executed on June 27, 2019.  Preliminary approval of the Settlement was granted on July 2, 2019.  Final approval was granted on December 5, 2019.

The case is Public Employees’ Retirement System of Mississippi v. Endo International plc, et al., No. 2017-02081-MJ, in the Court of Common Pleas of the Chester County Justice Center, Pennsylvania.  Labaton Sucharow represents lead plaintiff Public Employees’ Retirement System of Mississippi.  The defendants Company; Rajiv Kanishka Liyanaarchchie De Silva, Suketu P. Upadhyay, Daniel A. Rudio, Roger H. Kimmel, Shane M. Cooke, John J. Delucca, Arthur J. Higgins, Nancy J. Hutson, Ph.D, Michael Hyatt, William P. Montague, Jill D. Smith, William F. Spengler, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, and MUFG Securities Americas Inc. (f/k/a Mitsubishi UFJ Securities (USA) Inc.).

Submit Claim Form
If you purchased or otherwise acquired the publicly traded common stock of Endo issued in or traceable to the Company’s June 5, 2015 secondary offering of common stock, you may be entitled to a payment from the settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by November 14, 2019. 

Settlement Hearing
A Settlement Hearing, originally scheduled for October 21, 2019, was held on November 25, 2019 at 1:30 p.m., before the Honorable Edward Griffith, at the Court of Common Pleas of the Chester County Justice Center, Pennsylvania, Courtroom 11, 201 W. Market Street, West Chester, PA 19380.  

If you have questions about the Settlement, please contact Labaton Sucharow at settlementquestions@labaton.com or 1-888-219-6877, or contact the Claims Administrator, AB Data at (877)-307-6170. Additional information about the Settlement can also be found at: www.endointernationalsecuritiessettlement.com.