Mallinckrodt Stock Drop Suit Gets Pension Fund as Lead Plaintiff

Pharmaceutical products giant Mallinckrodt Public Limited Co. and its top officers will face a proposed securities class action led by the Canadian Elevator Industry Pension Trust Fund and its counsel, Robins Geller, a New York federal judge ruled.

Mallinckrodt, as well as its CEO, CFO, and other members of its leadership team, allegedly failed to disclose details about H.P. Acthar Gel, an injectable drug used for rheumatoid arthritis and other conditions. They are accused of issuing misleading statements about the safety and viability of the drug’s use to treat amyotrophic lateral sclerosis.

The litigation follows Mallinckrodt’s announcement that it had ...