Class Action Investigation – United Therapeutics Corporation
A class action investigation is being conducted by Kehoe Law Firm’s securities attorneys on behalf of United Therapeutics Corporation (“United Therapeutics”) (NASDAQ: UTHR) investors concerning the Company and its officers’ possible violations of federal securities laws.
On July 27, 2017, United Thereapeutics disclosed that it recorded a $210 million accrual relating to a potential settlement in connection with a DOJ investigation into the Company’s possible violations of the Federal Anti-Kickback Statute and the Federal False Claims Act. On this news, United Therapeutics’ stock price fell approximately 5% during intraday trading on July 27, 2017.
United Therapeutics 10-Q Filing Disclosure
United Therapeutics disclosed the following in a recent 10-Q filing:
In May 2016, [UTHR] received a subpoena from the U.S. Department of Justice (DOJ) requesting documents regarding [its] support of 501(c)(3) organizations that provide financial assistance to patients. Other companies have received similar inquiries. The DOJ is investigating whether that support may violate the Federal Anti-Kickback Statute and the Federal False Claims Act. Although [UTHR] believe[s] that [they] would successfully defend any action the DOJ might bring, [UTHR is] engaged in settlement negotiations with the DOJ as part of [UTHR’s] efforts to resolve the matter. However, [UTHR] cannot provide assurances that [its] efforts to reach a settlement with the DOJ will be successful or, if they are, what the timing or terms of any such settlement would be. [UTHR] expect[s] any such settlement would include a settlement payment to the government, and it may also include non-monetary obligations, such as [UTHR] entering into a corporate integrity agreement (CIA). [UTHR] may be required to incur significant future costs to comply with the CIA. If [UTHR] do[es] not reach a settlement with the DOJ, [UTHR] may incur material losses in connection with the defense or resolution of any subsequent litigation with the government. During the second quarter of 2017, [UTHR] recorded a $210.0 million accrual relating to this matter. The accrual was recorded in other current liabilities on the consolidated balance sheets and as an operating expense on the consolidated statements of operations. [UTHR is] unable to estimate the amount of reasonably possible losses in excess of the amount accrued because resolution of this matter through settlement is subject to a range of complex factors. Any actions taken by the DOJ, including settlement, could result in negative publicity or otherwise harm our reputation, reduce demand for [its] products and/or reduce coverage of [its] products, including by federal health care programs such as Medicare and Medicaid and state health care programs. If any or all of these events occur, [UTHR] business, prospects and stock price could be materially and adversely affected. Because matters such as this are inherently unpredictable, the ultimate outcome of this matter, including the amount of any loss, may differ materially from [UTHR’s] estimate.
United Therapeutics Shareholders
If you purchased or otherwise acquired shares of United Therapeutics, have information or have any questions concerning United Therapeutics’ disclosure or your potential legal rights, please fill out the form to the right or contact John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; or send an e-mail to [email protected].
Kehoe Law Firm, P.C.
The Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.