WELCOME TO THE DIPLOMAT SECURITIES SETTLEMENT WEBSITE
| Update: Please note that there are two class action settlements pertaining to Diplomat Pharmacy, Inc. common stock. Although the class actions involve the same security, they do not involve the same Class Period. This settlement pertained to Diplomat common stock purchases between February 29, 2016 and November 3, 2016, inclusive. It was settled in 2019 and the initial distribution of payments took place in 2021. If you recently received a notice about Diplomat common stock then it is most likely related to a different class action settlement. The latest settlement pertains to purchases of Diplomat common stock made between February 26, 2018 and November 11, 2019, inclusive. The new settlement is known as Diplomat Securities Litigation 2021. The cases are separate legal matters and, if you believe you are a Class Member and want to participate in the Settlement in that case, you must file a Proof of Claim by April 27, 2022. For more information about the latest Diplomat class action, you can visit the case settlement website, www.DiplomatSecuritiesLitigation.com. |
This website has been established to provide general information related to the proposed settlement of the lawsuit referred to as David N. Zimmerman v. Diplomat Pharmacy, Inc., et al., No. 2:16-cv-14005-AC-SDD (the “Litigation”), and is pending before the Honorable Avern Cohn in the United States District Court for the Eastern District of Michigan (the “Court”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated April 22, 2019, which can be found and downloaded by clicking on the Case Documents tab above.
The law firms of Robbins Geller Rudman & Dowd LLP and Glancy Prongay & Murray LLP represent you and other Class Members. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.
WHAT IS THIS LAWSUIT ABOUT?
This is a securities class action brought against Diplomat Pharmacy, Inc. ("Diplomat" or "Company") and certain of its officers and directors (collectively, "Defendants") for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) on behalf of all purchasers of Diplomat common stock between February 29, 2016 and November 3, 2016, inclusive. More specifically, the Lead Plaintiffs allege violations of the Exchange Act premised on allegedly false and misleading statements and omissions regarding Diplomat's accounting practices and financial condition related to the assessment of direct and indirect remuneration fees upon the Company by CVS Caremark. Lead Plaintiffs assert that as a result of these and other actions, the market price of Diplomat's common stock was artificially and improperly inflated between February 29, 2016 and November 3, 2016, inclusive, and that Class Members overpaid for the Diplomat common stock during the relevant time period.
If you purchased Diplomat common stock from February 29, 2016 through and including November 3, 2016, you are a Class Member. As set forth in the Stipulation, excluded from the Class are: Defendants, members of each Defendant’s immediate family; any entity in which any Defendant has or had a controlling interest; directors and senior executive officers of Diplomat during the Class Period; and Defendants’ legal representatives, heirs, successors, or assigns of any such excluded party. Also excluded from the Class is any Person who timely and validly requests exclusion pursuant to the requirements described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice").
WHAT DOES THE SETTLEMENT PROVIDE?
The proposed Settlement will create a cash settlement fund of $14,100,000 (the “Settlement Fund”), plus any interest that may accrue thereon less certain deductions.
The Settlement Fund, subject to deduction for, among other things, costs of class notice and administration and certain taxes and tax-related expenses, as well as attorneys’ fees and expenses, and the amount to Lead Plaintiffs in connection with their representation of the Class, as approved by the Court, will be available for distribution to Class Members. Your recovery from this fund will depend on a number of variables, including how many shares of Diplomat common stock you purchased, the timing of your purchases and any sales, and how many other Class Members make claims.
ADDITIONAL INFORMATION
Although the information on this website is intended to assist you, it does not replace the information contained in the Notice and the Stipulation.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
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SUBMIT A PROOF OF CLAIM
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Filing a claim is the only way to be eligible to receive a payment from the Settlement. If you are a Class Member, and do not exclude yourself from the Class, you will be bound by the Settlement as approved by the Court and you will give up any Released Claims that you have against Defendants and the other Released Parties.
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EXCLUDE YOURSELF FROM THE CLASS
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Excluding yourself is the only option that potentially allows you to ever be part of any other lawsuit against any of the Defendants concerning the Released Claims. Defendants and other Released Parties will have the right to assert any and all defenses they may have to any claims that you seek to assert, including, without limitation, the defense that any such claims are untimely under applicable statutes of limitation and statutes of repose.
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OBJECT TO THE SETTLEMENT, THE PLAN OF ALLOCATION, AND/OR THE APPLICATION FOR ATTORNEYS’ FEES AND EXPENSES
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Writing to the Court if you do not like the Settlement, the Plan of Allocation and/or the request for attorneys' fees and expenses. You will still be a Member of the Class.
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APPEAR AT THE HEARING
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Submitting a written objection and notice of intention to appear allows you to speak in Court about the fairness of the Settlement, the Plan of Allocation and/or the request for attorneys’ fees and expenses. If you submit a written objection, you may (but you do not have to) attend the hearing and speak to the Court about your objection.
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DO NOTHING AT ALL
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If you do not submit a Proof of Claim, you will not be eligible to receive any payment from the Settlement Fund. You will, however, still be a Member of the Class, which means that you give up your right to ever be a part of any other lawsuit against the Defendants about the Released Claims and you will be bound by any judgments or orders entered by the Court in the Litigation.
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IMPORTANT DATES AND DEADLINES
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Submit Proof of Claim
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September 23, 2019
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Request Exclusion
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July 30, 2019
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Submit Written Objection
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July 30, 2019
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Submit Notice of Intention to Appear
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July 30, 2019
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Settlement Hearing
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August 20, 2019, at 10:00 a.m. EST
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