NEW YORK, March 06, 2023 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Catalent, Inc. (“Catalent” or the “Company”) CTLT securities during the period from August 30, 2021 through October 31, 2022 (the “Class Period”). Investors have until April 25, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Catalent provides delivery technologies and development solutions for drugs, biologics, and consumer health products.
On August 29, 2022, Catalent disclosed its financial results for its fiscal year that ended on June 30, 2022, revealing that despite its repeated representations regarding sustained demand for its products and services, it reported sales that fell below consensus expectations because demand for its COVID-related products and services was facing substantial headwinds. On this news, the price of Catalent shares declined by $7.42 per share, or approximately 7.44%, from $99.70 per share to close at $92.28 on August 29, 2022.
On September 20, 2022, the Washington Post released an article, after the close of trading, entitled “FDA releasing millions of Moderna boosters as states warn of shortages.” According to that article, the FDA had delayed the release of millions of COVID-19 vaccine booster shots filled by Catalent as a result of their inspection of the Bloomington Facility. FDA officials had raised concerns that vaccine vials packaged at the Bloomington facility could be contaminated because the facility was not sufficiently sterile. On this news, the price of Catalent shares declined by $4.00 per share, or approximately 4.59%, from $87.15 per share to close at $83.15 on September 21, 2022 and declined by $4.09 per share, or approximately 4.92%, from $83.15 per share to close at $79.06 on September 22, 2022.
On November 1, 2022, Catalent reported its financial results for its fiscal quarter that ended on September 30, 2022, disclosing that its earnings had fallen to zero and lowered its fiscal year 2023 revenue guidance to the range of $4.625 to $4.875 billion from $4.975 billion to $5.225 billion. Also on November 1, 2022, the Company hosted an earnings call for its fiscal quarter that ended on September 30, 2022, on which Defendant Alessandro Maselli, the Company’s CEO and President, stated that the Company was anticipating “negative P&L [profit and loss] effects,” as Catalent attempted to address the FDA’s observations of regulatory violations. On this news, the price of Catalent shares declined by $16.20 per share, or approximately 24.65%, from $65.73 per share to close at $49.53 on November 1, 2022.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Catalent materially overstated its revenue and earnings by prematurely recognizing revenue in violation of U.S. Generally Accepted Accounting Principles (“GAAP”); (ii) Catalent had material weaknesses in its internal control over financial reporting related to revenue recognition; (iii) 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; and (iv) 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.
If you purchased or otherwise acquired Catalent securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.
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