Lannett $5.75 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Lannett Co. Inc. publicly traded common stock between July 15, 2014, and Oct. 31, 2017, may be eligible to claim a cash payment from a class action settlement.

Lannett Co. agreed to pay $5.75 million to settle a class action lawsuit alleging the company and certain executives made false and misleading statements and omissions about the competitiveness of the generic drug market and the impact of industry price-fixing investigations, which allegedly inflated the price of Lannett’s common stock during the class period.

Who can file a claim?

The settlement class includes:

• Investors who purchased or otherwise acquired Lannett publicly traded common stock between July 15, 2014, and Oct. 31, 2017, inclusive
• Investors whose purchases or acquisitions allegedly caused them financial harm

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or acquirer or their legal representative must submit the claim.
• Multiple accounts for the same legal entity must be combined into a single claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide documentation proving their authority.

How much is the Lannett payout?

The total settlement fund is $5,750,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, sale and holding
• The total recognized losses of all claimants

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

• Recognized loss amounts depend on transaction timing and share status:
• For shares sold during the class period, the recognized loss equals the lesser of the inflation per share at purchase minus inflation per share at sale or the purchase price minus the sale price.
• For shares sold after Nov. 1, 2017, the recognized loss equals the lesser of the purchase price minus the sale price or the purchase price minus the applicable 90-day lookback average price.
• For shares held through Jan. 30, 2018, the recognized loss equals the lesser of the purchase price minus $24.96 or the inflation per share at purchase.

• The settlement administrator will set the recognized loss to zero if the calculation results in a negative number.
• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Claimants whose calculated payment would be less than $10 will not receive a payout.

How to claim a Lannett securities class action settlement payment

Class members may submit a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is April 2, 2026.

Settlement administrator's mailing address: Utesch v. Lannett Co. Inc., et al., c/o A.B. Data Ltd., P.O. Box 173112, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide their full Social Security number or their taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase or sale price

Claimants must provide documentation supporting their holdings and transactions in Lannett common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

$5.75 million settlement fund

The $5,750,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $1,458,333
• Attorneys’ expenses: Up to $1,375,000
• Service awards to class representatives: Up to $30,000 total
• Payments to eligible class members: The remainder of the fund

Important dates

• Opt-out deadline: March 13, 2026
• Deadline to file a claim: April 2, 2026
• Fairness hearing: April 16, 2026

When is the Lannett securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement and resolves any appeals.

Why did this class action settlement happen?

The class action lawsuit alleged Lannett Co. Inc. and certain executives made false or misleading statements about competition in the generic drug market and failed to disclose the impact of industry price-fixing investigations, which allegedly caused investors to purchase Lannett common stock at artificially inflated prices.

Lannett and the named defendants denied all allegations of wrongdoing and liability but agreed to settle to avoid the risks, costs and delays of further litigation.

Sources

1. Class notice
2. Claim form