​DIPLOMAT PHARMACY, INC. 

​Securities Class Action

Class Period
October 9, 2014 to November 2, 2016
Lead Plaintiff Motion Deadline
January 9, 2017
Stock Symbol
DPLO
Court
Eastern District of Michigan


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$4.9 billion to $4.6 billion, citing a “softness” in the hepatitis C drug market and changes in fees paid to Medicare plans.  According to this class action, the company and its executives should have acknowledged
those shortcomings earlier to prevent investors from paying

unwarranted premium prices for shares.


About this action:
​ A class action has been commenced in the United States District Court for the Eastern District of Michigan on behalf of purchasers of Diplomat Pharmacy, Inc. (“Diplomat”) (NYSE: DPLO) securities between October 9, 2014 and November 2, 2016  (the “Class Period”).

​If you wish to serve as lead plaintiff, you must move the Court no later than January 9, 2017.  A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

​If you would like more information about getting involved in the Diplomat Class Action, please fill out the form to the left, or contact Sheila Feerick at 1-800-221-0015, or email

info@SafirsteinMetcalf.com.  Safirstein Metcalf LLP represents individual and institutional clients in a wide variety of litigation, with an emphasis on class, derivative, and other complex actions on behalf of investors and consumers. The firm handles matters on a contingency fee basis.
 
Diplomat is a specialty pharmacy that services patients with complex chronic diseases, including the dispensing, delivery, dosing and reimbursement of clinically intensive, high cost specialty drugs.  The Company’s core revenues are driven by multi-year and life-long patient care to treat chronic conditions including oncology, immunology and hepatitis C, and as a specialty pharmacy the Company is liable for direct and indirect remuneration (“DIR fees”) to government agencies, payors and insurance companies.

According to the lawsuit,
Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company lacked adequate internal controls over its financial reporting; (2) as a result the Company could not adequately calculate DIR fees; (3) the Company’s hepatitis C segment was not performing as previously disclosed to investors; (4) and therefore, the Company had overstated its full-year 2016 guidance; and (5) that, as a result of the foregoing, Defendants’ statements about Diplomat’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.  ​On October 26, 2016, the Company announced that its Chief Financial Officer, Sean Whelan, would resign. And, notably, Mr. Whelan’s resignation came just one week ahead of the Company announcing third quarter 2016 earnings.

  On this news, the Company’s share price fell $3.57 per share, or over 12%, to close at $25.31 per share on October 26, 2016. 

Moreover, one week later, on November 2, 2016, the Company announced its third quarter 2016 results, reporting earnings per share of $0.21 on revenues of $1.18 billion. The Company also lowered its high end guidance for the full year 2016, to $4.6 billion from $4.9 billion. The Company’s Chief Executive Officer attributed the poor operating results to “softness in the hepatitis C business” and DIR fees, adding that, “the methodology and transparency around how PBMs are applying these DIR fees changed materially in 2016.”


On this news the Company’s shares fell $9.43 per share, or over 42%, to close at $12.95 per share on November 3, 2016.