WELCOME TO THE DIPLOMAT SECURITIES LITIGATION 2021 WEBSITE
This website has been established to provide general information related to the proposed settlement of the consolidated case known as Mortimer v. Diplomat Pharmacy Inc., et al., Case No. 1:19-cv-01735 (the "Litigation"), pending before the United States District Court for the Northern District of Illinois (the "Court"). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Amended Stipulation of Settlement (the "Stipulation") dated January 24, 2022, which can be found and downloaded by clicking on the Case Documents tab above. Your rights may be affected by the Settlement if you purchased Diplomat Pharmacy Inc. ("Diplomat" or the "Company") common stock from February 26, 2018 through and including November 11, 2019, and were damaged thereby.
The law firm of Robbins Geller Rudman & Dowd LLP represents you and other Class Members. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.
WHAT IS THIS LAWSUIT ABOUT?
This case was brought as a class action alleging violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) on behalf of a class of all purchasers of Diplomat common stock between February 26, 2018 and November 11, 2019, inclusive. Among other things, the Complaint alleges violations of the Exchange Act premised on alleged false and misleading statements that portrayed Diplomat’s acquisition and integration of two pharmacy benefit managers (“PBMs”) as a success that was growing the PBM business while concealing and omitting to disclose integration and service failures that were leading to customer complaints and losses. Lead Plaintiff alleges that the false and misleading statements artificially inflated Diplomat’s stock price and when the truth was eventually disclosed, the price of Diplomat stock declined, resulting in substantial damages to the Class. Thus, Lead Plaintiff alleges that Class Members overpaid for Diplomat common stock during the relevant time period. Defendants have denied all allegations.
If you purchased Diplomat common stock from February 26, 2018 through and including November 11, 2019, and were damaged thereby, you are a Class Member. As set forth in the Stipulation, excluded from the Class are: Defendants, the current and Class Period officers and directors of the Company, the members of the immediate families and the legal representatives, affiliates, heirs and successors-in-interest, or assigns of any excluded person, and any entity in which such excluded persons have or had a controlling interest. Also excluded from the Class are those Persons who timely and validly request exclusion from the Class pursuant to the Notice.
WHAT DOES THE SETTLEMENT PROVIDE?
The Settlement, if approved, will result in the creation of a cash settlement fund of $15,500,000 (the “Settlement Fund”). The Settlement Fund, plus accrued interest and minus the costs of the Notice and all costs associated with the administration of the Settlement Fund, as well as attorneys’ fees and expenses, and the payment to Lead Plaintiff for representing the Class, as approved by the Court (the “Net Settlement Fund”), will be distributed to eligible Class Members pursuant to the Plan of Allocation that is described in the Notice.
ADDITIONAL INFORMATION
Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
| SUBMIT A CLAIM |
This is the only way to be eligible to receive a payment. If you are a Class Member, and do not exclude yourself from the Class, you will be bound by the Settlement as approved by the Court and you will give up any “Released Claims” (as defined in the Notice) that you have against the Defendants and the other “Released Parties” (as defined in the Notice). Proof of Claim and Release forms (“Proof of Claim”) must be postmarked (if mailed) or received (if submitted online) on or before April 27, 2022. |
| EXCLUDE YOURSELF |
If you exclude yourself from the Class, you will not be eligible to receive any payment from the Settlement Fund. This is the only option that potentially allows you to participate in another lawsuit against the Defendants or the other Released Parties relating to the Released Claims being released in this case. Should you elect to exclude yourself from the Class, you should understand that Defendants and the other Released Parties will have the right to assert any and all defenses they may have to any claims that you may seek to assert, including, without limitation, the defense that any such claims are untimely under applicable statutes of limitations and statutes of repose. Exclusions must be postmarked on or before April 27, 2022. |
| OBJECT |
You may write to the Court if you do not like this Settlement, the Plan of Allocation and/or the request for attorneys’ fees and expenses. You will still be a Member of the Class. Objections must be received by the Court and counsel for the Settling Parties on or before May 16, 2022. |
| GO TO THE HEARING ON JUNE 6, 2022 AT 9:30 A.M. CST |
Submitting a written objection and notice of intention to appear by May 16, 2022, allows you to speak in Court about the fairness of the Settlement, the Plan of Allocation and/or the request for attorneys’ fees and expenses. If you submit a written objection, you may (but you do not have to) attend the hearing and speak to the Court about your objection. Please note that the Court may change this date to a later date and/or time without further written notice to you. However, any different date or time will be posted on this website. |
| DO NOTHING |
If you are a Member of the Class and you do not submit a Proof of Claim by April 27, 2022, you will not be eligible to receive any payment from the Settlement Fund. You will, however, remain a Member of the Class, which means that you give up your right to sue about the claims that are resolved by the Settlement and you will be bound by any judgments or orders entered by the Court in the action. |
IMPORTANT DATES AND DEADLINES
| Submit Proof of Claim: |
April 27, 2022 |
| File Objection: |
May 16, 2022 |
| Request Exclusion: |
April 27, 2022 |
| File Notice of Appearance: |
May 16, 2022 |
| Settlement Hearing: |
June 6, 2022, at 9:30 a.m. CST |
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Please note that there are two class action settlements pertaining to Diplomat Pharmacy Inc. common stock. Although the class actions involve the same security, they do not involve the same Class Period. The first settlement pertained to Diplomat common stock purchases between February 29, 2016 and November 3, 2016, inclusive. This settlement pertains to purchases of Diplomat common stock made between February 26, 2018 and November 11, 2019 inclusive. The first settlement, known as the Diplomat Securities Settlement, was settled in 2019 and the initial distribution of that settlement has already taken place. This Settlement is known as Diplomat Securities Litigation 2021. The cases are separate legal matters. If you believe you are a Class Member and want to participate in the Settlement in this case, you must file a Proof of Claim by April 27, 2022. For more information about the earlier Diplomat class action, you can visit the case settlement website, www.DiplomatSecuritiesSettlement.com.
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