GRABAR LAW OFFICE INVESTIGATES POTENTIAL CLAIMS AGAINST OFFICERS AND DIRECTORS OF CATALENT, INC. (NYSE: CTLT)
Grabar Law Office is investigating potential claims on behalf of Catalent, Inc. (NYSE: CTLT) shareholders. The investigation concerns whether certain officers of Catalent have breached their fiduciary duties owed to the company.
Catalent, Inc. provides development and manufacturing solutions for drugs, protein-based biologics, cell and gene therapies, vaccines, and consumer health products at its over fifty facilities around the globe. Catalent’s vaccine manufacturing business initially benefitted from the COVID-19 pandemic, causing its stock price to soar to record highs at the outset of the pandemic.
The underlying securities fraud Complaint alleges that by mid-2021, when COVID-related work dropped off, Defendants engaged in accounting and channel stuffing schemes to pad the Company’s revenues. It is further alleged that statements made by Catalent, through certain of its officers, were materially false and misleading when made because they misrepresented or failed to disclose the following adverse facts, which were known to Catalent’s officers or recklessly disregarded by them: (a) Catalent materially overstated its revenue and earnings by prematurely recognizing revenue in violation of U.S. Generally Accepted Accounting Principles (“GAAP”); (b) Catalent had material weaknesses in its internal control over financial reporting related to revenue recognition; (c) Catalent falsely represented demand for its products while it knowingly sold more product to its direct customers than could be sold to healthcare providers and end consumers; (d) Catalent disregarded regulatory rules at key production facilities in order to rapidly produce excess inventory that was used to pad the Company’s financial results through premature revenue recognition in violation of GAAP and/or stuffing its direct customers with this excess inventory; and (e) as a result of the foregoing, Catalent's officers lacked a reasonable basis for their positive statements about the Company’s financial performance, outlook, and regulatory compliance.
Current Catalent shareholders who have held Catalent stock since before August 30, 2021, can seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award, at no cost to them.
If you would like to learn more about this matter, you are encouraged to contact us at email@example.com, or call Joshua Grabar at 267-507-6085.