WHITE PLAINS, N.Y. (Legal Newsline) – A stockholder alleges prices for a tobacco company's stock were artificially inflated during the first quarter of 2018.
Wayne Gilchrist, individually and on behalf of all others similarly situated, filed a complaint on Oct. 25 in the U.S. District Court for the Southern District of New York against Philip Morris International Inc., Andre Calantzopoulos, Martin G. King and Jacek Olczak over alleged violation of the Securities Exchange Act.
According to the complaint, between Feb. 8 and April 18, Gilchrist and the class of investors were informed by defendants that negative sales trends due to declining smoking percentages worldwide would be offset by new sales initiatives and that "favorable sales trends at the end of 2017 had continued into the first quarter of 2018."
However, the plaintiff alleges the defendant experienced a faster decline in cigarette and heated tobacco sales during the first quarter than investors were led to believe and stocks were traded at inflated price levels.
As a result, the plaintiff alleges he and the class suffered significant losses and damages after defendants' stock dropped nearly 22 percent during the first quarter.
The plaintiff holds Philip Morris International Inc., Calantzopoulos, King and Olczak responsible because the defendants allegedly made untrue statements of material fact.
The plaintiff requests a trial by jury and seeks judgment for compensatory damages, costs, expenses, and such other and further relief as the court may deem just and proper. He is represented by Melissa L. Troutner of Kessler Topaz Meltzer & Check, LLP in Radnor, Pennyslvania.
U.S. District Court for the Southern District of New York case number 1:18-cv-09856-UA