In re Stericycle, Inc. Securities Litigation
|Court:||U.S. District Court for the Northern District of Illinois|
|Judge:||Hon. Andrea R. Wood|
|Class Period:||02/07/2013 - 09/18/2016|
|Case Contacts:||John C. Browne, Adam H. Wierzbowski, Julia Tebor|
This action asserts claims pursuant to Sections 11, 12(a)(2), and 15 of the Securities Act and Section 10(b) of the Securities Exchange Act on behalf of a class of persons and entities who: i) purchased or acquired Stericycle, Inc. (“Stericycle” or the “Company”) securities between February 7, 2013 and September 18, 2016 (the “Class Period”); or ii) purchased securities in Stericycle’s public offering of 7,700,000 depository shares on or around September 15, 2015 (the “Offering”), which included 700,000 shares sold pursuant to an allotment option granted to the offering’s underwriters. Defendants include: i) the Company; ii) certain of the Company’s current and former senior executives; iii) the members of Stericycle’s board of directors; and iv) the underwriters of the Offering.
Stericycle is an international waste management and disposal company, located in Lake County, Illinois, which specializes in collecting and disposing regulated waste, including medical, pharmaceutical and hazardous waste. As of the first quarter of 2016, Stericycle derived 63% of its revenues from small quantity (“SQ”) customers and 37% of its revenue from large quantity (“LQ”) customers. Plaintiffs allege that throughout the Class Period, Stericycle, its current and former senior executives, the members of its Board, and the underwriters of the Offering made a series of materially misleading statements and omissions regarding the amount of customer attrition due to illegal rate increases on SQ customers and the merit of claims concerning these rate increases in other litigations. Stericycle also made materially misleading statements about the reasons for its growth, while knowing or recklessly disregarding that growth was attributable to the illegal rate increases. As a result of the Company’s statements to investors, the price of Stericycle securities was artificially inflated during the Class Period. Investors began to learn the truth when: i) the Company released sharply negative financial results on October 22, 2015 and February 4, 2016, but still omitted the true reason for the negative results and failed to disclose the extent of the Company’s poor performance; ii) the Company released additional negative financial results on April 28, 2016 and July 28, 2016 and admitted that this was due partially to increased “pricing pressure” on SQ customers; and iii) when on September 2, 2016, September 18, 2016, and in the early morning of September 19, 2016, analysts published reports discussing the extent of the “pricing pressure.” In response to these disclosures, the price of Stericycle securities fell sharply and investors incurred significant losses. This action seeks to recover the damages caused by Defendants’ misconduct.
On October 31, 2016, the Court appointed the Public Employees’ Retirement System of Mississippi and the Arkansas Teacher Retirement System as Co-Lead Plaintiffs and appointed BLB&G as Lead Counsel. On February 1, 2017, Co-Lead Plaintiffs filed their operative Class Action Complaint for Violations of the Federal Securities Laws.
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