City of Sterling Heights General Employees’ Retirement System v. Hospira, Inc., No. 11 C 8332 (N.D. Ill.) (misrepresentations regarding state of manufacturing facilities)

Sturman LLC served as counsel to the European institutional investor plaintiff in this action against Hospira, the world’s largest manufacturer of generic injectable pharmaceuticals including generic acute-care and oncology injectables and integrated infusion therapy and medication management systems.  The lawsuit alleged that Hospira and certain executive officers engaged in a fraudulent scheme to artificially inflate the company’s stock price by concealing significant deteriorating conditions, manufacturing and quality control deficiencies at its largest manufacturing facility located in Rocky Mount, North Carolina, and the costly effects of these deficiencies on production capacity. These deteriorating conditions culminated in a series of regulatory actions by the FDA which the defendants allegedly misrepresented to their investors.  The case settled for $60 million.