Eagle Pharmaceuticals $9.5M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

June 25, 2026 1:27 PM

Updated

June 25, 2026

Who can file a claim?

The settlement includes all persons and entities who purchased Eagle Pharmaceuticals publicly traded common stock between Aug. 9, 2022, and Oct. 1, 2024, inclusive, and suffered damages as a result.

Additional details

Both individuals and entities can be class members.
Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and must provide proof of authority.
Each separate legal entity must submit a separate claim.
Participants in and beneficiaries of an employee retirement or benefit plan covered by the Employee Retirement Income Security Act should not include Eagle stock transactions made through the plan on an individual claim form.

How much can class members get?

The total settlement fund is $9,500,000. The amount each class member will receive depends on several factors:

The number of valid claims submitted
The timing and prices of each purchase and sale of Eagle common stock
The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $1.18 per eligible share before deductions for court-approved fees, expenses and costs.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each share.
Recognized loss amounts depend on the timing of purchases and sales and the artificial inflation in Eagle's stock price, which the settlement administrator calculates using the court-approved plan of allocation (Page 11 of the settlement notice).
To have a recognized loss, class members must have purchased Eagle common stock during the class period and held it through at least one corrective disclosure date.

For shares sold before May 9, 2023, the recognized loss is $0.
For shares sold between May 9, 2023, and Oct. 1, 2024, the recognized loss is the lesser of the decline in artificial inflation from the purchase date to the sale date or the purchase price minus the sale price.
For shares sold between Oct. 2, 2024, and Dec. 30, 2024, during the 90-day lookback period, the recognized loss is the lesser of the decline in artificial inflation from the purchase date to the sale date, the purchase price minus the sale price or the purchase price minus the 90-day lookback value on the sale date.
For shares held as of the close of trading on Dec. 30, 2024, the recognized loss is the lesser of the artificial inflation on the purchase date or the purchase price minus $0.75, the average closing price during the 90-day lookback period.

The settlement administrator will set any recognized loss that calculates to a negative number to $0.
If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim an Eagle Pharmaceuticals securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Oct. 16, 2026.

Settlement administrator's mailing address: Eagle Pharmaceuticals Securities Litigation, c/o Epiq, P.O. Box 4790, Portland, OR 97208-4790

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holding, purchase and sale information, including:

Number of Eagle common shares held as of the opening of trading on Aug. 9, 2022
Trade dates for purchases and sales from Aug. 9, 2022, through Dec. 30, 2024
Number of shares purchased, acquired or sold and the total purchase, sale or acquisition price
Number of Eagle common shares held as of the close of trading on Dec. 30, 2024

Class members must also provide documentation to support their holdings and transactions in Eagle common stock. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker, financial advisor or financial institution containing the transactional information found in a confirmation slip

Payout options

Physical check

$9.5 million settlement fund

The $9,500,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $3,166,667
Attorneys' expenses: Up to $185,000
Service awards to plaintiffs: Up to $35,000 total
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: July 29, 2026
Fairness hearing: Aug. 19, 2026
Deadline to file a claim: Oct. 16, 2026

When is the Eagle Pharmaceuticals securities class action settlement payout date?

The settlement administrator will issue payments after it completes processing and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Eagle Pharmaceuticals and certain executives made materially false and misleading statements and omitted material facts regarding the amount of revenue from sales of its drug Pemfexy and the effectiveness of the company's internal controls over financial reporting. The plaintiffs claimed these statements artificially inflated the price of Eagle's common stock and caused investor losses when the public learned the truth.

Eagle denied all allegations of wrongdoing but agreed to settle to avoid the uncertainty, burden and expense of continued litigation.