Bergen Brunswig Sued by Shareholders
Two shareholder lawsuits were filed Friday alleging that Orange-based Bergen Brunswig Corp., the third-largest U.S. drug wholesaler, misled investors in order to inflate its stock price.
The suits, which seek class-action status, were filed in U.S. District Court in Los Angeles on behalf of investors who bought Bergen Brunswig stock between March 16 and Oct. 14.
The suits accuse the company of failing to disclose financial problems at Stadtlander Drug Co., which Bergen acquired in January. Bergen’s stock price rose after the purchase, allowing it to buy PharAmerica, the second-largest supplier of pharmacy services to nursing homes, the claims allege.
The PharAmerica and Stadtlander units have performed poorly. Bergen fired its chief executive last week when it announced fourth-quarter earnings had dropped 85%. Company shares have lost almost 80% of their value since the beginning of the year.
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