- Mayne Pharma (MYX) faces a class action over alleged failures to inform investors of an anti-competitive conduct probe by the US Department of Justice and the Office of the Attorney General in the State of Connecticut
- The class action is brought by Phi Finney McDonald on behalf of investors who bought shares in MYX between November, 2014, and December, 2016
- The law firm said the class action will allege Mayne’s share price was inflated by failures to disclose information regarding the investigation
- Mayne Pharma says it will “vigorously defend the proceeding” and “emphatically denies any and all allegations of wrongdoing”
- Mayne Pharma shares are down 4.48 per cent at 2:08 pm AEST to trade at 32 cents.
Mayne Pharma (MYX) is facing a class action over allegations it failed to disclose to investors an investigation by the US Department of Justice and the Office of the Attorney General in the State of Connecticut into alleged anti-competitive conduct.
The class action has been brought by law firm Phi Finney McDonald on behalf of investors who acquired shares in the US-based pharmaceutical company between November 24, 2014, and December 15, 2016.
Mayne Pharma said it would “vigorously defend the proceeding” which alleges the company “breached its continuous disclosure obligations and engaged in misleading and deceptive conduct”.
In an ASX release earlier today, Mayne Pharma said it “emphatically denies any and all allegations of wrongdoing”.
According to Phi Finney McDonald, the class action follows an announcement from December 2016 that the Attorney General of Connecticut had commenced anti-trust civil proceedings against a number of pharmaceutical companies, including Mayne Pharma.
Phi Finney McDonald claims Mayne failed to inform investors that it was likely to face civil or criminal action relating to price-fixing and market-sharing arrangements in the US, which were claimed to be in breach of the Sherman Antitrust Act.
The act is designed to prohibit trusts, monopolies and cartels as well as outlaw business practices that restrain trade and create monopolies within industries.
Phi Finney McDonald said the class action would allege that Mayne’s share price was inflated by failures to disclose this information and that shareholders suffered loss and damage.
Mayne Pharma shares were down 4.48 per cent at 2:08 pm AEST to trade at 32 cents.