Concordia International Corp. (TSX: CXR, NASDAQ: CXRX)
Superior Court of Quebec, Court File No.: 500-06-000834-164
For more information about this action, or to obtain a copy of the most recent statement of claim, please contact the Firm at firstname.lastname@example.org.
This securities class action relates to Concordia International Corp. (“Concordia”) releasing statements during the Class Period reporting increases in “organic growth” and revenues but omitted material facts that it was, in fact, discharging swaths of employees because of lack of sales and that some of its largest customers were forbidden from purchasing its products because the pricing was too high.
On August 12, 2016, Concordia issued the Corrective Disclosure, in which its founder and former Chief Executive Officer announced that the Company was lowering its earnings guidance to reflect the impact of competition on several products in its North America segment as well as the effect of foreign exchange rates. In doing so, Concordia reduced its 2016 projected revenues from $1.02-1.06 billion to $859-888 million and reduced its adjusted EBITDA from $610-640 million to $510-540 million. The Corrective Disclosure also informed the public that Concordia’s Chief Financial Officer was stepping down and that the Company’s Board of Directors had unanimously agreed to suspend its $0.075/common share quarter dividend. As a result, Concordia’s stock price on the Toronto Stock Exchange fell roughly 54.1% within 10 trading days following the Corrective Disclosure.
After multiple arm-length negotiations hosted by an independent mediator, the parties reached a settlement in the amount of USD $13.9 million, which was approved by the Ontario and Quebec courts.
Claim and Motion for Authorization Issued: December 22, 2016
Class Period: November 12, 2015 to and including August 11, 2016
Shareholders’ Canadian Counsel: Andrew J. Morganti, Morganti & Co.; Shawn Faguy, Faguy & Co.; and Jay Strosberg, Strosberg Sasso Sutts, P.C.
Shareholders’ U.S. Counsel: Phillip C. Kim, Gonen Haklay and Jacob A. Goldberg, The Rosen Law Firm, P.A.
Corporate Defendants’ Canadian Counsel: Norton Rose Fulbright Canada LLP
Auditor Defendant’s Canadian Counsel: McCarthy Tétrault LLP
Corporate Defendants’ U.S. Counsel: Gerard G. Pecht and Mark A. Robertson, Norton Rose Fulbright US LLP