All persons and entities excluding the defendants, who purchased or otherwise acquired the common stock of Taro Pharmaceutical Industries, Ltd. on the open market in the United States from July 2, 2015 through November 3, 2016, both dates inclusive.

Taro Pharmaceutical Industries, Ltd. Common Stock

The complaint alleges that Taro Pharmaceutical Industries, along with other defendants, engaged in a conspiracy to artificially inflate the prices of several generic drugs by manipulating market conditions and coordinating pricing strategies during industry meetings and other communications. Specifically, Taro is accused of colluding with competitor firms to fix the prices of at least seven different drugs: Clobetasol, Desonide, Econozale, Fluocinonide, Clomipramine, Acetazolamide, and Enalapril. These concerted actions reportedly led to price increases ranging from over 400% to as high as 1,500% or more, depending on the drug. Evidence provided in the complaint suggests that these price increases followed closely after trade association meetings where Taro representatives and those from other conspiring companies were present. Economic analyses cited in the complaint indicate that the price increases were not attributable to changes in market demand, costs of production, or other legitimate business factors, suggesting they were instead due to illicit coordination among the involved parties. Moreover, Taro allegedly benefited significantly from these anticompetitive practices, with substantial portions of its revenue during the class period derived from the inflated prices of the drugs involved in the conspiracy.

The complaint also details how Taro’s actions not only misled investors about the nature of its competitive business environment but also exposed the company to significant legal and regulatory risks, including investigations and penalties from both the Department of Justice and various state attorneys general. Additionally, the complaint includes allegations that Taro made materially false and misleading statements regarding its business practices, operational compliance, and financial performance, thereby deceiving the investing public and inflating its stock price artificially. These misleading statements and omissions were related to Taro’s pricing strategies, the competitive nature of its market, and its revenue generation, all of which were significantly impacted by the alleged price-fixing conspiracy. As a result of these actions, Taro and its investors faced significant financial losses when the truth about the company’s pricing practices and the related legal risks became publicly known.

Class action on behalf of all persons and entities excluding the defendants, who purchased or otherwise acquired the common stock of Taro Pharmaceutical Industries, Ltd. on the open market in the United States from July 2, 2015 through November 3, 2016, both dates inclusive. The defendants are charged with violations of Section 10(b) and Section 20(a) of the Securities Exchange Act related to alleged illegal price-fixing activities that impacted the company’s publicly reported financial conditions.

During the Class Period, the Taro’s common stock traded on the New York Stock Exchange under the ticker symbol “TARO”.