Indivior PLC

On April 9, 2019, the U.S. Department of Justice (“DOJ”) announced that a federal grand jury had indicted Indivior “for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction.” According to the indictment, Indivior deceived “health care providers and health care benefit programs into believing that Suboxone Film was safer, less divertible, and less abusable than other opioid-addiction treatment drugs,” acquiring billions of dollars in revenue in Suboxone Film prescriptions.

On this news, the Company’s share price fell $4.48 per share, more than 66%, to close at $2.30 per share on April 10, 2019, on unusually heavy trading volume.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) Indivior and its executives engaged in an illicit nationwide scheme to increase prescriptions of Suboxone Film; (2) Indivior illegally obtained billions of dollars in revenue from Suboxone Film prescriptions by deceiving health care providers and health care benefit programs; (3) as a result, Indivior would face felony charges; and (4) due to the foregoing, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.