NEW YORK (Legal Newsline) – A purchaser of Philip Morris common stock alleges that it purchased stock at artificially inflated prices earlier this year because of the company's misleading statements.
The city of Westland Police and Fire Retirement System filed a complaint individually on behalf of all others similarly situated on Sept. 4 in the U.S. District Court for the Southern District of New York against Philip Morris International Inc., André Calantzopoulos, Martin G. King and Jacek Olczak alleging violation of federal securities laws.
According to the complaint, the plaintiff alleges that between Feb. 8 and April 18, it purchased Philip Morris common stock at artificially inflated prices, causing it to suffer damages. It alleges that throughout the class period, the defendants assured investors that its previously declining sales trends were being offset by new sales initiatives and that these statements were false and misleading.
The suit states April 19, the defendant released "disappointing" first-quarter results and stock prices declined 15 percent per share.
The plaintiff holds Philip Morris International, Calantzopoulos, King and Olczak responsible because the defendant allegedly knew, or recklessly disregarded, that Philip Morris was experiencing a faster decline in overall cigarette and e-cigarette sales volumes during the first quarter of 2018 and has misrepresented material facts about its business and operations.
The plaintiff requests a trial by jury and seeks that this action is a proper class action, designating plaintiff as lead plaintiff and certifying plaintiff as a class representative, compensatory damages at an amount to be determined at trial and prejudgment and post-judgment interest, costs, expenses, attorneys' fees, and other relief as the court may deem fair and proper.
It is represented by Samuel H. Rudman of Robbins Geller Rudman & Dowd LLP in Melville, New York; David C. Walton and Brian E. Cochran of Robbins Geller Rudman & Dowd LLP in San Diego, California; and Thomas C. Michaud of Vanoverbeke, Michaud & Timmony PC in Detroit, Michigan.
U.S. District Court for the Southern District of New York case number 1:18-cv-08049-RA