Hospira Inc.

Hospira Inc.

Hospira Inc. Securities Settlement

The lawsuit was settled for $60 million in cash. The following is a summary of the proceedings in this lawsuit: ‘The Third Amended Consolidated Class Action Complaint (the Complaint) filed in the Action generally alleges, among other things, that during the Class Period, Defendants concealed significant deteriorating conditions, manufacturing and quality control deficiencies at its largest manufacturing facility located in Rocky Mount, North Carolina, and the costly effects of these deficiencies on production capacity. The Complaint also alleges that Defendants misrepresented the effectiveness of an optimization initiative which reduced quality control efforts and delayed and increased the cost of necessary remediation at Rocky Mount. The Complaint asserts that these allegedly false and misleading statements artificially inflated the price of Hospira common shares. The Complaint further alleges that Class Members purchased Hospira common shares during the Class Period at prices artificially inflated as a result of the Defendants dissemination of materially false and misleading statements, and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.’

 

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