NEW YORK, Feb. 20, 2025 (GLOBE NEWSWIRE) — Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against ICON plc (NASDAQ: ICLR) and certain of its senior executives for potential violations of the federal securities laws.
If you invested in ICON, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/icon-plc.
Investors have until April 11, 2025, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased ICON securities. The case is pending in the U.S. District Court for the Eastern District of New York and is captioned Shing v. ICON plc, et al., No. 25-cv-00763.
Why was ICON Sued for Securities Fraud?
ICON is a clinical research organization (“CRO”) that provides a range of services to help its pharmaceutical company customers bring new drugs to market. In recent years, many large pharmaceutical companies have implemented drastic cost reduction programs, including shifting part of their clinical studies in-house and away from CROs like ICON.
Despite these industry trends, ICON repeatedly represented that client demand was robust and that the company was benefiting from the trends. However, in truth, ICON’s business had significantly deteriorated due to customer cost reduction measures and industry funding limitations.
The Stock Declines as the Truth is Revealed
On October 23, 2024, ICON revealed a quarterly “revenue shortfall” that missed analyst estimates by more than $100 million. The company also revealed that indicators of customer demand, such as net new business, had materially deteriorated, that two of its large pharmaceutical customers had significantly curtailed upcoming work, and that numerous other customers had cancelled, delayed, or reduced the scope of ongoing and planned trials. As a result, ICON cut its annual revenue guidance for 2024 by $220 million. This news caused a more than 20% decline in the price of ICON stock over a two-day trading period, from a closing price of $280.76 per share on October 23, 2024 to $220.47 per share on October 25, 2024.
Then, on January 14, 2025, ICON issued financial guidance for 2025 that came in well below analysts’ expectations which the company attributed to the downturn in the industry. This news caused the price of ICON stock to decline more than 8%, from a closing price of $217.99 per share on January 13, 2025 to $200.24 per share on January 14, 2025.
Click here for more information: https://www.bfalaw.com/cases-investigations/icon-plc.
What Can You Do?
If you invested in ICON you may have legal options and are encouraged to submit your information to the firm.
All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.
Submit your information by visiting:
https://www.bfalaw.com/cases-investigations/icon-plc
Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
Why Bleichmar Fonti & Auld LLP?
Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
For more information about BFA and its attorneys, please visit https://www.bfalaw.com.
https://www.bfalaw.com/cases-investigations/icon-plc
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