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.
Read the full report here.
More articles on pharmacy:
FDA approves AbbVie’s $59K rheumatoid arthritis drug
Teva launches generic version of EpiPen for kids
American Regent boosted price of essential hospital product by 1,300%
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.