SAN DIEGO & SLOUGH, England–(BUSINESS WIRE)–$RBGLY #ClassAction–Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Reckitt Benckiser Group PLC (OTC: RBGLY) has filed a class action complaint against the company for alleged violations of the Securities Exchange Act of 1934 between July 28, 2014 and April 9, 2019. Reckitt manufactures and sells health, hygiene, and home products.
View this information on the law firm’s Shareholder Rights Blog:
Recknitt Faces Largest Opioid Settlement in History
According to the complaint, in 2009, Reckitt Pharma, an opioid treatment division of Reckitt, initiated a massive campaign based on false representations that touted its Suboxone film as “better from a child safety point of view” and as “less divertable and abusable” in an attempt to switch consumers away from its Suboxone tablet, which experienced greater market competition. These statements were materially false and, in fact, Reckitt’s own internal analysis showed that Suboxone film was actually more frequently abused or involved in child exposures. Despite these facts, the statements remained uncorrected throughout the relevant period and artificially inflated Reckitt’s revenue to over $840 million annually. Then, from July 2017 – February 2018, Reckitt announced it had recorded charges totaling £614 million in relation to a DOJ investigation of its Reckitt Pharma operations. On this news, the price of Reckitt ADSs dropped more than 15%. The truth was finally revealed on April 9, 2019, when the DOJ filed a criminal indictment against Reckitt Pharma (now Indivior) for a multibillion-dollar scheme to defraud the public through the marketing and sale of Suboxone Film. On this news, the price of Reckitt ADSs declined an addition 6%. Reckitt Pharma settled the federal investigation for $1.4 billion, which, at the time, was the “largest opioid settlement in US history.”
Recknitt Benckiser Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, [email protected], or via the shareholder information form on the firm’s website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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