In an important decision for companies issuing revenue guidance in the face of business uncertainties, S&C won the dismissal of shareholder litigation against pharmaceutical company Indivior PLC and its CEO, CFO and Chief Commercial Officer.
The action was filed last year after the company lowered its revenue outlook and its stock price fell. The plaintiff alleged that the defendants misrepresented the prospects of Indivior’s flagship product, Sublocade, a monthly injection used to treat opioid use disorder, and of Perseris, a product used to treat schizophrenia.
In an August 6 ruling, U.S. District Judge Henry Hudson of the Eastern District of Virginia dismissed the claims. The judge concluded that defendants’ statements were “opinions—not guarantees” and that the plaintiff’s theory was based on “hindsight.” Further, the court found that “no reasonable investor would make an investment decision based on” defendants’ “vague and optimistic” statements about their products.
The S&C team was led by Robert Giuffra Jr. (who made the oral argument), David Rein and Julia Malkina and included Stella Meyer and Emma Kenny-Pessia.