Class Action Lawsuit Filed Against Assertio Holdings Over Alleged Securities Law Violations
On February 12, 2025, a class action lawsuit was filed in the Lake County Circuit Court, Nineteenth Judicial Circuit, State of Illinois, against Assertio Holdings, Inc. (Assertio) and certain of its current and former senior executives and directors (Defendants). The lawsuit alleges that Assertio and the Defendants violated the federal securities laws in connection with Assertio’s merger with Spectrum Pharmaceuticals, Inc. (Spectrum), which was completed on July 31, 2023.
Background of the Merger
The merger between Assertio and Spectrum resulted in Assertio issuing its common stock in exchange for Spectrum’s common stock. At the time of the merger, Assertio’s shares were trading at around $15 per share, while Spectrum’s shares were trading at around $25 per share. The merger was seen as a strategic move for Assertio to expand its product portfolio and enter the oncology market.
Allegations in the Lawsuit
The class action lawsuit alleges that Assertio and the Defendants made false and misleading statements and failed to disclose material information to investors regarding the merger. Specifically, the lawsuit alleges that the Defendants knew or should have known that Spectrum was experiencing declining sales and facing regulatory challenges for one of its key products, but failed to disclose this information to the public. The lawsuit also alleges that Assertio and the Defendants made false and misleading statements about the financial benefits of the merger, including projected synergies and cost savings.
Impact on Assertio Shareholders
If the allegations in the lawsuit are proven, Assertio shareholders who acquired the Company’s common stock in exchange for Spectrum common stock prior to the merger could be negatively impacted. The lawsuit seeks damages for the alleged securities law violations, which could result in a significant financial loss for the plaintiffs. Additionally, the lawsuit could lead to increased scrutiny of Assertio’s business practices and financial reporting, potentially impacting its stock price and reputation.
Impact on the World
The impact of the lawsuit on the world at large could be significant, as it highlights the importance of transparency and honesty in corporate mergers and acquisitions. The lawsuit also raises questions about the role of regulatory agencies in ensuring that investors are protected from securities law violations. Furthermore, if the allegations in the lawsuit are proven, it could lead to increased regulatory scrutiny of Assertio and potentially other companies in the healthcare industry. This could result in additional compliance costs and increased regulatory burdens for these companies.
Conclusion
The class action lawsuit filed against Assertio Holdings and certain of its executives and directors alleges securities law violations in connection with the Company’s merger with Spectrum Pharmaceuticals. If the allegations are proven, Assertio shareholders who acquired the Company’s common stock in exchange for Spectrum common stock prior to the merger could be negatively impacted. The lawsuit also raises questions about the importance of transparency and honesty in corporate mergers and acquisitions, and the role of regulatory agencies in protecting investors. The outcome of the lawsuit could have significant implications for the healthcare industry and the broader business community.
- Assertio Holdings, Inc. and certain executives and directors sued for securities law violations related to merger with Spectrum Pharmaceuticals, Inc.
- Allegations include false and misleading statements and failure to disclose material information.
- Impact on Assertio shareholders who acquired common stock in exchange for Spectrum common stock prior to merger.
- Potential for increased regulatory scrutiny and compliance costs for healthcare industry.
- Highlights importance of transparency and honesty in corporate mergers and acquisitions.
