In re Henry Schein, Inc. Securities Litigation
|Court:||United States District Court for the Eastern District of New York|
|Judge:||U.S. District Court Judge Margo K. Brodie / U.S. Magistrate Judge Vera M. Scanlon|
|Class Period:||03/07/2013 - 02/12/2018|
|Case Contacts:||James A. Harrod, Michael Mathai|
This is a securities fraud class action filed on behalf of a class of all persons and entities who purchased or otherwise acquired Henry Schein, Inc. (“Henry Schein” or the “Company”) securities between March 7, 2013 and February 12, 2018, inclusive (the “Class Period”).
Henry Schein, based in Melville, New York, is the largest distributor of dental products in the United States.
This action arises from a significant decline in the value of Henry Schein stock, which fell precipitously in the wake of recent revelations that the Company and its senior executives engaged in a widespread and illegal scheme to fix the prices of dental products by entering into illicit agreements to refuse to provide discounts to or compete for the business of groups of independent dentists, rather than compete based on price and comply with antitrust laws.
This illegal conduct inflated the Company’s margins and directly contradicts statements that Henry Schein made to investors regarding how it competes on a level playing field.
On February 12, 2018, the Federal Trade Commission (“FTC”) announced that it filed a complaint against Henry Schein and two of the nation’s other largest distributors of dental products alleging violations of the U.S. antitrust laws. The FTC’s complaint detailed communications between executives of Henry Schein and its conspirators evidencing the agreement, as well as attempts to monitor and ensure compliance with the agreement. The disclosure of the FTC complaint caused the price of Henry Schein stock to decline from approximately 7%, to $67.39 per share.
On June 22, 2018, Magistrate Judge Vera M. Scanlon appointed City of Miami General Employees’ & Sanitation Employees’ Retirement Trust to as Lead Plaintiff and Bernstein Litowitz Berger & Grossmann LLP as Lead Counsel, and on September 14, 2018 Lead Plaintiffs filed their Consolidated Class Action Complaint for Violations of the Federal Securities Laws.
Defendants served their Motion to Dismiss on December 10, 2018, and Lead Plaintiff served its Opposition on January 23, 2019. Defendants’ Motion to Dismiss briefing completed on February 22, 2019. A decision is pending.
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