NEW YORK, Aug. 24, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Reckitt Benckiser Group plc ("Reckitt" or the "Company") (OTCMKTS: RBGLY). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Reckitt and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On July 24, 2017, Reckitt announced, in connection with its second-quarter 2017 financial results, that it had recorded a £318 million charge related to ongoing U.S. Department of Justice ("DOJ") and Federal Trade Commission ("FTC") investigations into its former Reckitt Benckiser Pharmaceuticals Inc. ("Reckitt Pharma") operations, the Company's division dedicated to opioid addiction treatments. On this news, the price of Reckitt American depositary shares ("ADSs") dropped 5% to close at $20.34 per ADS on July 24, 2017, on abnormally high trading volume.
On February 19, 2018, Reckitt announced, in connection with its full-year 2017 financial results, that it had recorded an exceptional charge of £296 million due to the DOJ and FTC investigations, and that the California Department of Insurance was also now investigating Reckitt. On this news, the price of Reckitt ADSs declined more than 10% to close at $16.76 per ADS on abnormally high trading volume.
Then, on April 9, 2019, the DOJ filed a criminal indictment against Reckitt Pharma (now Indivior), which detailed a years-long scheme to defraud the public and the Company's investors through the marketing and sale of Suboxone Film that had generated more than $3 billion in illicit scheme proceeds. The 28-count criminal indictment charged Indivior with multiple felonies, including conspiracy and mail, wire and healthcare fraud, and directly implicated the top executives of Reckitt and Reckitt Pharma. On this news, the price of Reckitt ADSs declined over 6% to close at $15.87 per ADS on April 10, 2019, on abnormally high trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP