Lawsuit filed for Investors who lost money with shares of Catalent, Inc. (NYSE: CTLT)

An investor, who purchased shares of Catalent, Inc. (NYSE: CTLT), filed a lawsuit over alleged violations of Federal Securities Laws by Catalent, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Catalent, Inc. (NYSE: CTLT) have certain options and for certain investors are short and strict deadlines running. Deadline: April 25, 2023. NYSE: CTLT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Somerset, NJ based Catalent, Inc., together with its subsidiaries, develops and manufactures solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products worldwide. Catalent, Inc directly sells these products to pharmaceutical companies which later sell them through the supply chain to healthcare providers (i.e., hospitals, clinics, etc.), which administer them to patients, who are the end consumers.

The plaintiff 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, that these schemes gave Catalent the appearance of continued growth, causing its stock price to reach record highs, that meanwhile, to support these schemes and keep pace with its lofty growth targets, Catalent, Inc. was cutting corners on safety and control procedures at key production facilities, that by late 2022, Catalent reported significant sales declines and excess inventory throughout its supply chain, and that as a result, Catalent stock dropped to pre-COVID levels causing substantial losses to its investors as they learned that Catalent's early-COVID revenues were never sustainable, and that between between August 30, 2021 and October 31, 2022 its revenues were the product of securities fraud.

Shares of Catalent, Inc. (NYSE: CTLT) declined from $115.33 per share in July 2022, to as low as $41.62 per share on December 22, 2022.

The plaintiff claims that between August 30, 2021 and October 31, 2022, statements made by the defendants were materially false and misleading when made because they misrepresented or failed to disclose the following adverse facts, which were known to Defendants 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, Defendants lacked a reasonable basis for their positive statements about the Company's financial performance, outlook, and regulatory compliance between August 30, 2021 and October 31, 2022.

Those who purchased shares of Catalent, Inc. (NYSE: CTLT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.