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Viatris Investors: Seize the Opportunity to Act Before the June Deadline in Securities Fraud Lawsuit

Victor HaleMonday, Apr 21, 2025 10:14 am ET
10min read

The Schall Law Firm has ignited a critical legal battle against Viatris Inc. (NASDAQ: VTRS), alleging that the pharmaceutical giant misled investors through false statements about regulatory risks and financial performance during the period from August 8, 2024, to February 26, 2025. This class action lawsuit, rooted in securities fraud, presents a pivotal moment for investors who held Viatris shares during this timeframe. With a looming June 3, 2025, deadline to join the case, stakeholders must act swiftly to secure their rights and potentially recover losses.

The Allegations at the Heart of the Lawsuit

At the core of the complaint are Viatris’s misrepresentations regarding its Indian manufacturing facility and its interactions with the U.S. Food and Drug Administration (FDA). According to the lawsuit, the company downplayed severe deficiencies at the facility, which led to a failed FDA inspection in late 2024. Despite these issues, Viatris allegedly described the subsequent FDA warning letter and import alert as a “minor headwind,” claiming the regulatory challenges would have limited operational impact.

The lawsuit argues that these statements were false and designed to prop up the company’s stock price. When the truth about the facility’s shortcomings and the FDA’s severe actions became public, the market reacted swiftly. On February 27, 2025, Viatris reported dismal Q4 2024 financial results, missing earnings and revenue consensus estimates. The company also issued pessimistic guidance for 2025, citing delays in remedying the FDA’s concerns.

The Financial Fallout of Misleading Statements

The data paints a stark picture. Between August 2024 and February 2025, Viatris’s stock price fluctuated, but a sharp decline followed the February 27 earnings report. For instance, shares fell nearly 15% in a single day after the company disclosed its struggles, erasing billions in market capitalization. The lawsuit argues that this drop reflects the market’s realization that Viatris’s earlier claims were fraudulent.

Critically, the complaint disputes the company’s assertion that it was “more than halfway through its remediation efforts.” According to the Schall Law Firm, Viatris failed to disclose the full scope of the FDA’s concerns, which included systemic quality control failures at the plant. These omissions, the lawsuit claims, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, which prohibit material misstatements or omissions in public disclosures.

Legal Context and Investor Action

This case is still in its early stages. The court has not yet certified the class, meaning investors who purchased Viatris shares during the Class Period must actively opt in by the June 3 deadline to be eligible for potential recovery. The Schall Law Firm, which specializes in securities class actions, is urging affected investors to contact them directly for guidance.

Why This Matters for Investors

The stakes are high. If successful, the lawsuit could set a precedent for holding pharmaceutical firms accountable for opaque regulatory disclosures. Viatris’s case is emblematic of a broader trend where companies face scrutiny for downplaying risks that directly impact their operational and financial stability.

Conclusion: Time is Running Out

Investors holding Viatris shares between August 8, 2024, and February 26, 2025, face a clear choice: act before June 3 or risk losing the opportunity to seek compensation. The data underscores the material impact of Viatris’s alleged misstatements: the stock’s post-February crash aligns with the timeline of the truth emerging, suggesting a causal link between the fraud and investor losses.

With the Schall Law Firm’s track record in securities litigation and the specificity of the allegations—including direct ties to FDA actions—the case has strong legal footing. However, the window to join is narrow. For those affected, this is not just a legal matter but a chance to hold corporate accountability and recover from what appears to be a calculated deception. The clock is ticking.

This analysis is for informational purposes only and should not be construed as legal or financial advice. Investors are encouraged to consult with legal counsel regarding their specific circumstances.

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