Perrigo Class Action Lawsuit: 8 Frequently Asked Questions

Overview

Perrigo provides over-the-counter health and wellness solutions.  According to the complaint, in November 2022, Perrigo acquired Nestlé’s Gateway infant formula plant in Wisconsin, along with the U.S. and Canadian rights to Nestlé’s Good Start® infant formula brand, for $170 million.

False and Misleading Statements

The Perrigo Class Action Lawsuit alleges that throughout the Class Period defendants made false and/or misleading statement and/or failed to disclose that:

• (i) The infant formula business acquired from Nestlé suffered from significant underinvestment in maintenance, operational improvements, and repairs;
• (ii) Perrigo needed to make substantial capital and operational expenditures above Perrigo’s outwardly stated cost estimates to remediate the infant formula business;
• (iii) There were significant manufacturing deficiencies in the facility for Perrigo’s infant formula business; and
• (iv) As a result of the foregoing, Perrigo’s financial results, including earnings and cash flow, were overstated.

February 27, 2024, Announcement

• The Perrigo Class Action Lawsuit further alleges that on February 27, 2024, Perrigo revealed significant acquisition and integration-related charges, including a purported one-time cash cost of an additional $35 million to $45 million for remediations to address production and facility issues in the infant formula business.
• Perrigo allegedly further disclosed a 50% decline in earnings per share compared to the prior year due to infant formula remediation actions and that the infant formula business’s full year adjusted operating income was less than half the expected normalized run rate of $140 million per quarter.
• On this news, the price of Perrigo stock fell more than 15%, according to the complaint.

May 7, 2024, Announcement

• Then, on May 7, 2024, Perrigo allegedly disclosed “[n]et sales of $91 million decreased 34.5% due primarily to lower shipments to customers as the company works through its infant formula plant remediation plans” and “gross margin of 36.5% declined 90 basis points, including a -280 basis points impact from infant formula.”
• On this news, the price of Perrigo stock fell nearly 10%, according to the complaint.

August 6, 2025, Announcement

• Thereafter, on August 6, 2025, the Perrigo Class Action Lawsuit alleges that Perrigo revealed that its adjusted gross profit decreased $30 million, or 6.9%, due in part to “production variability in infant formula leading to an increase in product scrap in the quarter,” and that Perrigo’s reported gross margin was 34.4%, a decrease of 260 basis points “due primarily to the same factors.”
• On this news, the price of Perrigo stock allegedly fell more than 11%.

November 5, 2025, Announcement

• Finally, on November 5, 2025, Perrigo allegedly announced it “is initiating a strategic review of its infant formula business” including a “full range of alternatives,” and is “reassessing the Company’s previously announced investment in this business of $240 million.”
• The complaint further alleges that Perrigo also revealed that “due primarily to infant formula industry dynamics,” Perrigo had slashed its fiscal year 2025 outlook, including its reported net sales growth guidance to -2.5% to -3%, a negative turn from the previously expected 0% to 3%, and its expected adjusted diluted earnings per share to a range of $2.70 to $2.80, equating to a growth of 5% to 9%; a significant cut from the previously expected range of $2.90 to $3.10, equating to growth of 13% to 21%.

• On this news, the price of Perrigo stock fell more than 25%, according to the complaint.

2. What Is the Benefit for Investors?

• Pooling Resources: Participating in a class action allows investors to pool their resources, which offers leverage they would not have in an individual lawsuit against a large corporation.

• More Cost Efficient: The collective approach also makes it more efficient and cost-effective to pursue legal action, especially for smaller investors.

3. When Is the the Lead Plaintiff Deadline in the Perrigo Class Action Lawsuit?

Lead Plaintiff Deadline: Lead plaintiff motions for the Perrigo Class Action Lawsuit must be filed with the court no later than January 16, 2026.

4. What Is Discovery in in the Perrigo Class Action Lawsuit?

Discovery is a crucial step in the process of the Perrigo Class Action Lawsuit. It refers to the pre-trial phase where both parties involved in the case gather and exchange information and evidence related to the dispute. The purpose of discovery is to ensure that each side has access to all relevant facts and evidence, promoting transparency and fairness in the legal proceedings.

This process allows both parties to evaluate the strengths and weaknesses of their case, enabling them to make informed decisions regarding settlement negotiations or trial strategies. Discovery methods include requests for documents, interrogatories, depositions, and requests for admissions. Through this extensive fact-finding process, discovery helps to establish the foundation for a well-prepared and comprehensive legal argument.

5. What Damages Am I Entitled to in the Perrigo Class Action Lawsuit?