LOS ANGELES–(BUSINESS WIRE)–Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Catalent, Inc. (“Catalent” or the “Company”) (NYSE: CTLT) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your Catalent investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Catalent-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.
On August 29, 2022, Catalent disclosed that demand for its COVID-related products was facing substantial headwinds. On this news, Catalent’s stock price fell $7.42, or 7.4%, to close at $92.28 per share on August 29, 2022, thereby injuring investors.
Then, on September 20, 2022, The Washington Post reported that the release of Catalent’s COVID vaccines had been delated due to improper sterilization at one of the Company’s key facilities. On this news, Catalent’s stock price fell $8.09, or 9.3%, over the next two consecutive trading days to close at $79.06 per share on September 22, 2022.
Then, on November 1, 2022, Catalent disclosed regulatory issues at its key facilities that were negatively impacting its financial results, revealing that the Company’s quarterly earnings had declined to zero. On this news, Catalent’s stock price fell $20.83, or 31.7%, over two trading days to close at $44.90 per share on November 2, 2022.
Then, on November 16, 2022, Catalent revealed that it was carrying approximately $400 million in excess inventory. On this news, Catalent’s stock price fell $6.84, or 14%, over two trading days to close at $42.07 per share on November 17, 2022.
Then, on December 8, 2022, GlassHouse Research published a report alleging that Catalent had been overstating its revenues by $568.2 million in violation of GAAP. The report detailed the rapid increase in Catalent’s contract asset and inventory balances, declining customer deposits, executive turnover, and recent scrutiny of the Company’s revenue accounting. On this news, Catalent’s stock price fell $1.68, or 3.6%, to close at $45.54 per share on December 8, 2022, thereby injuring investors further.
Whistleblower Notice: Persons with non-public information regarding Catalent should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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