CASES
Hospira, Inc.
Class Period: Mar 24, 2009 to Oct 17, 2011
Lead Plaintiff Deadline: Jan 20, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Hospira, Inc. ("Hospira" or the "Company") on behalf of all persons who purchased or otherwise acquired the common stock of Hospira) between between March 24, 2009 to October 17, 2011. This case has been filed in the USDC - Illinois (Northern).
The Complaint alleges as follows: Throughout the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results. Specifically, defendants failed to disclose that: (i) Hospira suffered from extensive quality control issues throughout the Class Period, which undermined both the viability of and the supposed financial savings that would be generated by Project Fuel, a Company program designed to optimize Hospira's operations and increase shareholder value; (ii) Hospira was unable to remedy problems identified in FDA Warning Letters related to Hospira's infusion pumps, quality control deficiencies, and manufacturing weaknesses; (iii) Hospira's revenue guidance for 2010 and 2011 was misstated and lacked a reasonable basis when made; and (iv) as a result of the foregoing, defendants' statements regarding the Company's financial performance and expected earnings were false and misleading and lacked a reasonable basis when made.
On October 18, 2011, the Company announced disappointing preliminary third quarter financial results and slashed full-year guidance, pointing to a production disruption at its Rocky Mount, North Carolina manufacturing plant, which accounted for approximately 25% of the Company's sales. The Company attributed the production slowdown to the impact of an ongoing FDA investigation.
The result of the Company's negative results was a 21% drop in the price of Hospira common stock, which fell $7.85 per share to close at $29.51 per share on October 18, 2011.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.