Phi Finney McDonald acts for the Lead Plaintiff and Group Members in a class action against Mayne Pharma Group Limited (MYX; MYPHY) (Mayne Pharma) commenced in the Supreme Court of Victoria on behalf of investors who acquired shares in Mayne Pharma (traded on the Australian Securities Exchange between 24 November 2014 and 15 December 2016 (inclusive) (claim period). Vannin Capital Operations Limited (Vannin), a global litigation funder is providing funding for the class action.
Background
This class action follows the announcement on 15 December 2016 that the Attorney General of Connecticut had commenced anti-trust civil proceedings against a number of pharmaceutical companies, including Mayne Pharma’s US subsidiary. It is alleged in that proceeding that Mayne Pharma’s US subsidiary, along with other defendants, participated in a conspiracy to restrain trade, inflate the price of generic pharmaceuticals, and reduce competition.
The market responded strongly to this information, with Mayne Pharma’s share price falling around 10% over the following trading days.
Allegations
The details of the allegations in the class action are set out in the Statement of Claim (which may be subject to change). In the Statement of Claim, the plaintiff alleges (in summary) that Mayne Pharma:
- contravened its continuous disclosure obligations between 24 November 2014 and 15 December 2016 (inclusive) by failing to properly inform the market about alleged discussions and agreements its US subsidiary had with Heritage Pharmaceuticals in relation to sales of a product called “Doxy DR”, which were or could be regarded as anti-competitive and contrary to US law, and that subpoenas had been issued by US regulators; and
- engaged in misleading or deceptive conduct between 24 November 2014 and 15 December 2016 (inclusive) by maintaining public representations that Mayne was compliant with competition law, had appropriate systems for ensuring compliance, and was not exposed to the risk of reputational, financial or other impacts in the US for non-compliance with competition law
The class action alleges that investors who acquired Mayne Pharma shares during the Claim Period are entitled to compensation for loss and damage as they paid more for those shares than they would have paid as a consequence of Mayne Pharma’s conduct. The class action also alleges that some group members would not have purchased Mayne Pharma shares if Mayne Pharma had complied with its obligations.
Opt Out and Registration
The Mayne Pharma Class Action has been the subject of a Court ordered opt out and registration process. The opt out and claim registration deadline was 4pm (AEST) on 28 June 2023.
Further details of that process are contained in the Opt Out and Registration Notice and Orders made on 20 March 2023.
As the registration deadline has passed, if you have not already registered, you will no longer be entitled to participate in any in-principle settlement reached at the Court Ordered Mediation or within 3 months after the first day of that mediation, unless the Court makes orders otherwise to allow your participation.
We encourage you to still confirm your details and interest in participating in any settlement of the Mayne Pharma Class Action by completing a registration form. If there is a proposed settlement of the class action within the above time period, we intend to apply to the Court for orders at the appropriate time that persons who completed a registration form after the registration deadline (but before the settlement was negotiated) be allowed to participate in the proposed settlement.
You can notify Phi Finney McDonald of your interest in participating in any settlement of the Mayne Pharma Class Action by completing and submitting the online registration form, by pressing the “Register” button below.
If you have a question about notifying Phi Finney McDonald of your interest in participating in any settlement of the Mayne Pharma Class Action, please read the Answers to Frequently Asked Questions for Group Members.