SHAREHOLDER ALERT: Perrigo Company plc (NYSE: PRGO)
(ShareholderAlert.com) — Shareholder Alert, a free shareholder news & information service announces that class actions have commenced on behalf of shareholders of Perrigo Company plc (NYSE: PRGO). If you suffered a loss you have until the lead plaintiff deadline to request that the court appoint you as lead plaintiff. Shareholders interested in serving as lead plaintiff have until the deadlines listed to petition the court and further details about the cases can be found below.
Perrigo Company plc (NYSE: PRGO)
Lead Plaintiff Deadline: March 4, 2019
Class Period: November 8, 2018 and December 20, 2018
During the Class Period, and unbeknownst to investors, Perrigo misled investors by way of an SEC filing on November 8, 2018. On that date, Perrigo disclosed the existence of an audit finding letter from the Irish tax authorities without disclosing material details associated with the letter.
The Class Period begins on November 8, 2018, when Perrigo filed its Form 10-Q for the period ended September 29, 2018, which stated in pertinent part:
On October 31, 2018, we received an audit finding letter from the Irish Office of the Revenue Commissioners (“Irish Revenue”) for the years under audit 2012-2013. The audit finding letter relates to Elan’s taxation of the 2013 sale of
the Tysabri® intellectual property and other assets related to Tysabri® to Biogen Idec from Elan. The consideration paid by Biogen to Elan took the form of an upfront payment and future contingent royalty payments. We disagree with the Irish Revenue position as asserted in the audit finding letter and intend to contest it, and therefore the amount of adjustments, if any, that may ultimately be
asserted by the Irish Revenue cannot be quantified at this stage. The amount of any future assessment could be material.
The truth was revealed on December 20, 2018, when Perrigo filed a form 8-K which stated in pertinent part:
On October 30, 2018, two months before the expiry of the applicable five year statutory limitation period, Irish Revenue issued an audit findings letter to Elan Pharma asserting the claim (a) that IP sales transactions by Elan Pharma, including the sale of Tysabri®, were not part of the trade of Elan Pharma and therefore should have been treated as chargeable gains subject to an effective 33% tax rate, rather than the 12.5% tax rate applicable to trading income, and (b) that all amounts received in respect of both the Tysabri® transaction and the related transaction entered into with RPI Finance Trust in 2017 should be taxed in Elan Pharma’s 2013 tax year.
Following the filing of this form 8-K with the SEC, Perrigo’s stock price fell drastically, from $52.36 at close on December 20, 2018 to $37.03 at close on December 21,
2018, a drop of more than 29%.