Michigan specialty pharmacy settles class-action suit for $14.1M

Flint, Mich.-based Diplomat Pharmacy will pay $14.1 million to settle a class-action lawsuit that accused the company of misleading thousands of investors, according to MLive.com.

The settlement, finalized on Aug. 20, will be distributed to people who invested in Diplomat stock between February 2016 and November 2016. 

Diplomat was accused in a November 2016 lawsuit of violating federal securities laws by promoting misleading or false information in news releases that artificially inflated its stock. In addition, investors claim they weren't aware of problems Diplomat had with one of its pharmacy benefit managers. 

The pharmacy attempted to dismiss the suit, arguing that the plaintiffs failed to provide plausible motive for fraud and knew that their accounting estimates were wrong at the time they were published. 

After more than two years of legal battles, the parties reached a settlement July 16 and asked a judge to finalize it.

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