LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Catalent, Inc. (“Catalent” or the “Company”) (NYSE: CTLT) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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On August 29, 2022, Catalent disclosed that demand for its COVID-related products was facing substantial headwinds. On this news, Catalent’s stock price fell $7.42, or 7.4%, to close at $92.28 per share on August 29, 2022, thereby injuring investors.
Then, on September 20, 2022, The Washington Post reported that the release of Catalent’s COVID vaccines had been delayed due to improper sterilization at one of the Company’s key facilities. On this news, Catalent’s stock price fell $8.09, or 9.3%, over the next two consecutive trading days to close at $79.06 per share on September 22, 2022.
Then, on November 1, 2022, Catalent disclosed regulatory issues at its key facilities that were negatively impacting its financial results, revealing that the Company’s quarterly earnings had declined to zero. On this news, Catalent’s stock price fell $20.83, or 31.7%, over two trading days to close at $44.90 per share on November 2, 2022.
Then, on November 16, 2022, Catalent revealed that it was carrying approximately $400 million in excess inventory. On this news, Catalent’s stock price fell $6.84, or 14%, over two trading days to close at $42.07 per share on November 17, 2022.
Then, on December 8, 2022, GlassHouse Research published a report alleging that Catalent had been overstating its revenues by $568.2 million in violation of GAAP. The report detailed the rapid increase in Catalent’s contract asset and inventory balances, declining customer deposits, executive turnover, and recent scrutiny of the Company’s revenue accounting. On this news, Catalent’s stock price fell $1.68, or 3.6%, to close at $45.54 per share on December 8, 2022, thereby injuring investors further.
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If you purchased Catalent securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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