Shareholders with $50,000 losses or more are encouraged to contact the firm.
Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming April 25, 2023 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Catalent, Inc. (“Catalent” or the “Company”) (NYSE: CTLT) securities between August 30, 2021 and October 31, 2022, inclusive (the “Class Period”).
If you suffered a loss on your Catalent investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Catalent-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
On August 29, 2022, Catalent disclosed that demand for its COVID-related products was facing substantial headwinds. On this news, Catalent’s stock price fell $7.42, or 7.4%, to close at $92.28 per share on August 29, 2022, thereby injuring investors.
Then, on September 20, 2022, The Washington Post reported that the release of Catalent’s COVID vaccines had been delayed due to improper sterilization at one of the Company’s key facilities. On this news, Catalent’s stock price fell $8.09, or 9.3%, over the next two consecutive trading days to close at $79.06 per share on September 22, 2022.
Then, on November 1, 2022, Catalent disclosed regulatory issues at its key facilities that were negatively impacting its financial results, revealing that the Company’s quarterly earnings had declined to zero. On this news, Catalent’s stock price fell $20.83, or 31.7%, over two trading days to close at $44.90 per share on November 2, 2022.
Then, on November 16, 2022, Catalent revealed that it was carrying approximately $400 million in excess inventory. On this news, Catalent’s stock price fell $6.84, or 14%, over two trading days to close at $42.07 per share on November 17, 2022.
Then, on December 8, 2022, GlassHouse Research published a report alleging that Catalent had been overstating its revenues by $568.2 million in violation of GAAP. The report detailed the rapid increase in Catalent’s contract asset and inventory balances, declining customer deposits, executive turnover, and recent scrutiny of the Company’s revenue accounting. On this news, Catalent’s stock price fell $1.68, or 3.6%, to close at $45.54 per share on December 8, 2022, thereby injuring investors further.
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 that: (1) Catalent materially overstated its revenue and earnings by prematurely recognizing revenue in violation of U.S. Generally Accepted Accounting Principles; (2) Catalent had material weaknesses in its internal control over financial reporting related to revenue recognition; (3) Catalent falsely represented demand for its products while it knowingly sold more product to its direct customers than could be sold to healthcare providers and end consumers; (4) Catalent disregarded regulatory rules at key production facilities in order to rapidly produce excess inventory that was used to pad the Company’s financial results through premature revenue recognition in violation of GAAP and/or stuffing its direct customers with this excess inventory; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased or otherwise acquired Catalent securities during the Class Period, you may move the Court no later than April 25, 2023 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 Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230306005143/en/
Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224