From Filing to Certification: Exploring the Initial Stages of the Assertio Class Action Lawsuit under PSLRA

If you suffered losses in Assertio stock, contact Assertio stock loss lawyer Timothy L. Miles about an Assertio class action lawsuit

Introduction to the Assertio class action lawsuit

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The Assertio class action lawsuit has already garnered attention since its recent filing due to implications for both the pharmaceutical industry and the legal landscape. This article aims to provide an in-depth exploration of the initial stages of the Assertio class action lawsuit, from filing to certification, under the Private Securities Litigation Reform Act (PSLRA).

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Understanding the PSLRA and its impact on class action lawsuits

Before getting into the details of the Assertio class action lawsuit, it is crucial to understand the PSLRA and its impact on class action lawsuits such as the Assertio lawsuit. Enacted in 1995, the PSLRA was designed to address perceived abuses in securities class action litigation. The Act introduced several key provisions, including heightened pleading standards and the requirement of a lead plaintiff with a significant financial stake in the case. These provisions aimed to deter frivolous lawsuits and promote transparency in class action litigation.

The initial stages of the Assertio class action lawsuit - from filing to certification

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The Assertio class action lawsuit began with the filing of a complaint by an investor who alleged that the company made false and misleading statements regarding its flagship product Indocin asserting its net income was unsustainable given the risk of generic competition.  Further, the Assertio class action lawsuit alleges Assertio’s July 2023 acquisition of Spectrum Pharmaceuticals, Inc. was less valuable than Assertio had represented to investors. Accordingly, Assertio had overstated the positive impact the sale of Indocin products and the acquisition of Spectrum were likely to have on Assertio’s profitability.

Additionally, the Assertio class action lawsuit alleges that on August 3, 2023, Zydus Lifesciences Limited, a generic pharmaceutical company, received approval from the U.S. Food and Drug Administration (“FDA”) to manufacture and market 50mg indomethacin suppositories, the generic version of Assertio’s Indocin suppositories.  On this news, the price of Assertio stock fell nearly 46%, according to the complaint.

Next, the Assertio class action lawsuit alleges that on November 8, 2023, Assertio reported third quarter of 2023 non-GAAP earnings per share of $0.01, missing consensus estimates by $0.09, and revenue of $35.63 million, missing consensus estimates by $14.8 million.  On this news, the price of Assertio stock fell more than 43%, according to the complaint.

Finally, the Assertio class action lawsuit alleges on January 3, 2024, Assertio announced that CEO, defendant Dan Peisert, was stepping down from his role as Assertio’s CEO.  On this news, the price of Assertio stock fell nearly 11%, according to the complaint.​

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consolidation and THE LEAD PLAINTIFF DEADLINE IN THE ASSERTIO CLASS ACTION LAWSUIT

​When a securities class action is filed such as the Assertio class action lawsuit, the person who files the first complaint is required to publish a notice announcing the filing within 20 days of filing the complaint. Anyone who wants to be lead plaintiff on behalf of the class in the Assertio class action lawsuit must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.

Within 90 days after publication of the notice announcing the filing of the Assertio class action lawsuit to class members, the court shall consider any motions for lead plaintiff and appoint as lead plaintiff the class member(s) that the court determines to be most capable of adequately representing the interests of class members.  If several similar lawsuits are filed which is typical, and a motion for consolidation is pending, the PSLRA provides that the court shall appoint a lead plaintiff as soon as practicable after rendering its decision on consolidation.

DEFENDANTS' MOTION TO DISMISS

After appointing lead plaintiff(s) and lead counsel, typically, the court will enter a scheduling order setting a deadline for the filing of a consolidated complaint which shall become the operative pleading and then a deadline for the defendants to file a motion(s) to dismiss the consolidated complaint along with a briefing schedule for the motion.  The PSLRA raised the bar for the plaintiffs in securities class actions which a heightened pleading standard plaintiffs have to meet. Plaintiffs are required to plead with particularity every statement which is alleged to have been false or misleading and the set forth the reasons why those statements were false or misleading. Additionally, for statements based on information and belief, plaintiffs must state with particularly all facts on which that belief is formed. 

If plaintiffs meet their burden and the motion(s) to dismiss are denied, then the case moves to class certification. To obtain class certification in the Assertio class action lawsuit, the plaintiffs needed to demonstrate that the case meets the criteria outlined in Rule 23 of the Federal Rules of Civil Procedure. This rule requires, among other things, that the class be so numerous that joinder of all members would be impracticable, that there are common questions of law and fact, and that the representative parties adequately represent the interests of the class.

Key parties involved in the lawsuit

The Assertio class action lawsuit involves several key parties, each with distinct roles and interests. The lead plaintiff, typically an institutional investor or a group of investors, represents the class and spearheads the litigation. The defendants, in this case, Assertio, is the pharmaceutical company accused of making false and misleading statements along with certain of its executive officers. Additionally, the court plays a vital role in overseeing the proceedings and ensuring that the rights of all parties are protected.

Legal requirements for certification of a class action lawsuit

To obtain class certification in the Assertio class action lawsuit, the plaintiffs must meet the legal requirements set forth in Rule 23 of the Federal Rules of Civil Procedure. As previously mentioned, these requirements include numerosity, commonality, typicality, and adequacy of representation. Numerosity refers to the size of the class, which must be sufficiently large to make joinder impracticable. Commonality requires that there are questions of law or fact common to the class. Typicality ensures that the claims or defenses of the representative parties are typical of the class. Lastly, adequacy of representation necessitates that the representative parties will fairly and adequately protect the interests of the class. 

Challenges faced during the initial stages of the Assertio class action lawsuit

The initial stages of the Assertio class action lawsuit will not be without their challenges. One of the primary challenges faced by the plaintiffs will be meeting the stringent requirements for class certification under the PSLRA. The heightened pleading standards introduced by the PSLRA made it more difficult for plaintiffs to survive motions to dismiss and proceed with their claims. Additionally, the defendants often employ various legal strategies to challenge class certification, including arguing against the numerosity or commonality of the class, or asserting that the representative parties are not adequate to protect the class's interests.

Notable developments and rulings in the case

Throughout the course of the Assertio class action lawsuit, there will be several notable developments and rulings that shaped the trajectory of the litigation. For instance, the court may grand defendants' motion to dismiss and dismiss the case, or issue a ruling on class certification, either granting or denying it based on the plaintiffs' ability to meet the requirements of Rule 23. These rulings have significant implications for the litigation, as class certification determines whether the case proceeds as a class action or as individual lawsuits.

Comparison with other class action lawsuits under the PSLRA

The Assertio class action lawsuit is just one example of the numerous class action lawsuits that have been filed under the PSLRA. By comparing the Assertio lawsuit with other similar lawsuits, a clearer understanding of the impact of the PSLRA on class action litigation can be gained. It is important to note that each case is unique and may have specific circumstances that differentiate it from others. However, analyzing trends and commonalities among these cases can provide valuable insights into the efficacy of the PSLRA's provisions.

Potential outcomes and implications of the lawsuit

The potential outcomes and implications of the Assertio class action lawsuit are significant for both the plaintiffs and the defendants. If the plaintiffs are successful in the Assertio lawsuit, Assertio may be required to provide monetary compensation to the class members and make changes to its business practices or other governance reforms. On the other hand, if the defendants prevail, it could set a precedent that may impact future class action lawsuits under the PSLRA. The implications of this case extend beyond the specific parties involved and have broader implications for the pharmaceutical industry and the legal landscape as a whole.

Conclusion

In conclusion, the initial stages of the Assertio class action lawsuit under the PSLRA involve a complex and multifaceted process, from the filing of the complaint to the certification of the class. Understanding the legal requirements, key parties, challenges, and potential outcomes of the lawsuit is crucial to grasp the significance of this litigation. As the case progresses, it will undoubtedly continue to shape the landscape of class action lawsuits under the PSLRA and have far-reaching implications for both the pharmaceutical industry and the legal system as a whole.

CONTACT AN ASSERTIO​ STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN ASSERTIO STOCK ABOUT A ASSERTIO CLASS ACTION LAWSUIT

If you suffered losses in Assertio​​ stock, contact Assertio​ stock loss lawyer Timothy L. Miles today for a free case evaluation about an Assertio class action lawsuit. Call today and see what a Assertio​ stock loss lawyer could do for you if you suffered losses in Assertio​​​ ​stock.

Assertio​ stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors, shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

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