SAN FRANCISCO, March 06, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges Catalent, Inc. CTLT investors who suffered substantial losses submit your losses now.
Class Period: Aug. 30, 2021– Oct. 31, 2022
Lead Plaintiff Deadline: Apr. 25, 2023
Contact An Attorney Now: CTLT@hbsslaw.com
Catalent, Inc. (CTLT) Securities Fraud Class Action:
The litigation focuses on Catalent’s repeated claims that its drug product development and manufacturing were done under rigorous quality and operational standards, that its vaccines for COVID would be a sustaining and enduring source of revenue, and that its financial statements complied with Generally Accepted Accounting Principles (“GAAP”).
According to the complaint, Defendants made misleading statements and failed to disclose that Catalent: (1) materially overstated its revenue and earnings by prematurely recognizing revenue in violation of GAAP; (2) had material weaknesses in its internal control over financial reporting related to revenue recognition; (3) falsely represented demand for its products while knowingly selling more products to its direct customers than could be sold to healthcare providers and end consumers; and (4) disregarded regulatory rules at key production facilities in order to rapidly produce excess inventory that was used to pad its financial results through premature revenue recognition in violation of GAAP and/or channel stuffing its direct customers with this excess inventory.
Investors began to learn the truth through a series of partial disclosures beginning on Aug. 29, 2022, when Catalent revealed that demand for its COVID-related products was facing substantial headwinds.
Then, on Sept. 20, 2022, the Washington Post reported that the release of Catalent’s COVID-19 vaccines had been delayed by regulators because of improper sterilization at one of the company’s key facilities.
Finally, on Nov. 1, 2022, Catalent announced that its quarterly earnings had fallen to $0, slashed its financial guidance, and revealed that regulatory issues at its key facilities were negatively impacting financial results.
In response to these events, the price of Catalent shares has traded sharply lower.
“We’re focused on investors’ losses and proving Catalent cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Catalent and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Catalent should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CTLT@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
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