Phi Finney McDonald acts for the Lead Plaintiff and Group Members in a class action against Mayne Pharma Group Limited (MYX; MYPHY) (Mayne) on behalf of investors who acquired shares in Mayne (traded on the Australian Securities Exchange), as well as American Depository Receipts traded on the New York Stock Exchange between 24 November 2014 and 15 December 2016 (inclusive) (claim period). The proceeding is commenced in the Supreme Court of Victoria, and global litigation funder Vannin Capital is providing funding for the class action.
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 (USA) Inc. It is alleged in that proceeding that Mayne, 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’s share price falling around 10% over the following trading days.
The proceeding alleges that Mayne breached its continuous disclosure obligations, and engaged in misleading and deceptive conduct, by failing to inform investors:
- from late 2014, that Mayne had agreed to price-fixing and market-sharing arrangements with Heritage Pharmaceuticals Inc. executives which were in violation of the Sherman Antitrust Act (Heritage Agreement);
- upon receiving a subpoena from the US Department of Justice, and later a separate subpoena from the Attorney General for the State of Connecticut, that documents producible in response to those subpoenas contained information about or referred to the Heritage Agreement; and
- consequently, that Mayne was reasonably likely to face civil or criminal action in relation to the Heritage Agreement, with associated reputational damage.
The class action alleges that Mayne’s share price was inflated by its disclosure failures, and that shareholders suffered loss and damage.