A securities class action has been filed in the USDC – S.D.N.Y. against Reckitt Benckiser Group Plc (RBGLY) (“Reckitt” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Reckitt American Depositary Shares (“ADSs”) between January 13, 2021, and July 28, 2024, both dates inclusive (the “Class Period”).
Reckitt, a United Kingdom (“U.K.”)-based global consumer goods company, reports three operating segments: (1) Hygiene, (2) Health, and (3) Nutrition. In 2017, Reckitt acquired Mead Johnson Nutrition (“Mead Johnson”) for $19.7 billion, which effectively provided the Company with its current Nutrition segment. Reckitt’s Nutrition segment includes, among others, its infant and child nutrition businesses, its adult nutrition, and its range of vitamins, minerals, and supplements. Brands under Reckitt’s Nutrition segment include infant and baby formulas such as Enfamil.
The complaint alleges that, during the Class Period, Defendants made misleading statements and omissions regarding the Company’s business, financial condition, and prospects. Specifically, Defendants failed to warn investors and consumers:
(1) that preterm infants were at an increased risk of developing NEC by consuming Reckitt’s cow’s milk-based formula, Enfamil;
(2) of the attendant impact on Reckitt’s sales of Enfamil and Reckitt’s exposure to legal claims; and
(3) as a result of the above, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times, thereby harming investors.
The price of the Company’s ADSs fell $1.02, or nearly 9%, from a closing price of $11.66 per share on July 28, 2024, to a closing price of $10.64 per share on July 29, 2024.
If you purchased Reckitt American Depositary Shares (“ADSs”) during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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