This securities class action arises out of the Defendant Concordia International Corp.’s (“Concordia”) failure to disclose adverse material facts as well as misrepresentations relating to Concordia’s business model, growth platform, pro forma revenues and dividend payments in documents released from November 12, 2015 to August 11, 2016.
The class action was instituted further to Concordia reporting “organic growth” which, in actual fact, was the result of unsustainable material price increases across its products. On August 12, 2016, Concordia issued a Corrective Disclosure in which it announced that the Company was materially reducing its Earnings Guidance to reflect the impact of competition on several products in its North America segment and foreign exchange rates. The Corrective Disclosure announced that Concordia was reducing its 2016 projected revenues from $1.02/1.06 billion to $859/888 million and reducing its adjusted EBITDA from $610/640 million to $510/540 million. As well, Concordia announced that two (2) of its drugs were faced with an impairment charge of $567.1 million, that its Board of Directors agreed to suspend its $0.075/common share quarter dividend and that its Chief Financial Officer was stepping down. Following the Corrective Disclosure issued by Concordia’s former CEO, Concordia’s stock price on the Toronto Stock Exchange fell roughly 54.1%.
The Class Period concerned in this class action is from November 12, 2015 to and including August 11, 2016.
The proposed class members are the following:
All Quebec-based persons and entities who, from November 12, 2015 to August 11, 2016, acquired Concordia’s securities and held some or all such securities as of August 12, 2016, other than the Defendants, members of the immediate families of the Individual Defendants, and the directors, officers, subsidiaries, and affiliates of Concordia.
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