Perrigo Company plc (PRGO) Securities Class Action Lawsuit Filed [November 24, 2025]

Introduction to Perrigo Company plc (PRGO) Securities Class Action Lawsuit

A securities fraud class action has been filed on behalf of investors in Perrigo Company plc (NYSE: PRGO). The case covers purchases of Perrigo securities from February 27, 2023 through November 4, 2025. Investors allege the company misrepresented the condition and costs of the infant formula business acquired from Nestlé-concealing underinvestment, manufacturing deficiencies, and the substantial remediation spending required. Beginning in 2024, Perrigo disclosed added remediation charges, reduced earnings linked to formula plant issues, inventory scrap tied to production problems, and ultimately a strategic review of the business. As these facts surfaced, Perrigo's stock fell sharply on multiple dates, leaving investors with significant losses.

Perrigo Company plc (PRGO) Securities Lawsuit Case Details

Case Name: French v. Perrigo Company plc, et al.
Case No.: 1:25-cv-09596
Jurisdiction: U.S. District Court, Southern District of New York
Filed on: November 17, 2025

Perrigo Company plc (PRGO) Company Profile

Perrigo provides over-the-counter health and wellness solutions in the U.S., Europe, and internationally, manufacturing and marketing home health products including infant formula, toothbrushes, and pain relievers. The Nutrition category, which includes infant formula, represents approximately 17% of fiscal year 2024 sales in the North America segment.

Perrigo Company plc (PRGO) Securities Lawsuit Class Period

February 27, 2023 - November 4, 2025, inclusive.

All persons and entities that purchased or otherwise acquired Perrigo securities during the Class Period and who were damaged thereby (the "Class"). Excluded from the Class are Defendants, the officers and directors of the Company, at all relevant times, members of their immediate families and their legal representatives, heirs, successors, or assigns, and any entity in which Defendants have or had a controlling interest.

Allegations in the Perrigo Company plc (PRGO) Securities Class Action Lawsuit

The complaint names Perrigo, CEO Patrick Lockwood-Taylor, former CEO Murray Kessler, and CFO Eduardo Bezerra. Investors allege these defendants painted a steady picture of operations and integration while omitting the depth of problems in the newly acquired infant formula business. The story starts on February 27, 2023, when a company press release highlighted fiscal year net sales growth to $4.5 billion and higher gross margins. One day later, on February 28, 2023, Perrigo's FY22 Form 10-K stated the company "actively monitor[s]" processes to remain in compliance with FDA rules for infant formula production. 

On May 9, 2023, then-CEO Murray Kessler told investors that strategic initiatives were progressing, supply chain programs were boosting productivity, and integrations of HRA, the Gateway facility, and the Good Start brands were on track with synergies slightly ahead of expectations. According to the complaint, these assurances masked serious issues in the infant formula business acquired from Nestlé. Investors allege the business suffered from significant underinvestment in maintenance, operational improvements, and repairs; that Perrigo would need substantial capital and operational expenditures beyond public estimates; and that significant manufacturing deficiencies existed at the facility. As a result, investors allege Perrigo overstated financial results, including earnings and cash flow, and that the upbeat statements about operations and prospects lacked a reasonable basis.

The Truth Emerges

The picture began to change on February 27, 2024, when Perrigo reported fiscal year 2023 results and disclosed significant acquisition and integration-related charges, including an additional $35-$45 million in cash costs for remediations to address production and facility issues in the infant formula business. Management acknowledged "headwinds" from actions to "augment and strengthen" the infant formula business that would negatively impact 2024 performance and reported a 50% decline in earnings per share compared to the prior year due to these remediation actions. On May 7, 2024, the company revealed that net sales of $91 million in the Nutrition category decreased 34.5% primarily due to lower shipments as it worked through plant remediation plans, and gross margin fell with a -280 basis points impact from infant formula; management noted planned large-scale plant resets had been completed. 

The strain persisted into August 6, 2025, when Perrigo reported that adjusted gross profit decreased by $30 million, or 6.9%, due in part to production variability in infant formula, and the CFO stated a production issue led to scrapping approximately $11 million of inventory. The sequence culminated on November 5, 2025, as Perrigo announced a strategic review of its infant formula business, said it was reassessing a previously announced $240 million investment, and described the business as less strategic; on that same date, the company also cut its fiscal year 2025 outlook due to infant formula industry dynamics. These disclosures stood in stark contrast to earlier claims of smooth integrations, operational progress, and regulatory compliance in the infant formula unit.

Market Reaction

The market responded quickly to each development. On February 27, 2024, following the remediation and earnings disclosures, Perrigo's share price fell $4.87, or 15.14%, to close at $27.30 on unusually heavy volume. On May 7, 2024, after the company reported steep Nutrition net sales declines and gross margin pressure tied to infant formula, the stock dropped $3.28, or 9.8%, to close at $30.15, again on heavy trading. The selloffs continued. On August 6, 2025, after Perrigo disclosed production variability and approximately $11 million of inventory scrap, shares fell $3.01, or 11.31%, to close at $23.61. Then on November 5, 2025, following the strategic review announcement and reduced 2025 outlook, the stock declined $5.09, or 25.2%, to close at $15.10, with unusually heavy trading; these announcements occurred before the market opened.

Next Steps

• Submissions for lead plaintiff are due: January 16, 2026.

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.

• The Court will then consider motion for class certification.

• The Court will later consider a Motion to Dismiss.

To learn if you are eligible for recovery under the PRGO securities class action lawsuit, visit the case submission page here.

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.