Perrigo Faces Securities Fraud Class Action Over Infant Formula Business Issues
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10h ago
0mins
Source: PRnewswire
- Lawsuit Background: Perrigo is facing a securities fraud class action for failing to disclose significant underinvestment issues in its infant formula business acquired from Nestlé, resulting in investor losses from February 2023 to November 2025.
- Financial Impact: The lawsuit alleges that Perrigo must incur substantial capital and operational expenditures to remediate the infant formula business, leading to overstated financial results, including earnings and cash flow, which misled investors.
- Manufacturing Deficiencies: The complaint highlights significant manufacturing deficiencies in Perrigo's infant formula operations that were not disclosed, undermining the credibility of the company's positive statements about its business prospects.
- Investor Participation: Investors are urged to participate in the lawsuit by January 16, 2026, to potentially lead the class action and safeguard their interests against the alleged securities fraud.
Analyst Views on PRGO
Wall Street analysts forecast PRGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRGO is 27.50 USD with a low forecast of 23.00 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 14.700
Low
23.00
Averages
27.50
High
32.00
Current: 14.700
Low
23.00
Averages
27.50
High
32.00
About PRGO
Perrigo Company plc is a provider of over the counter (OTC) health and wellness solutions that are designed to enhance individual well-being. Its segments include Consumer Self-Care Americas (CSCA) and Consumer Self-Care International (CSCI). The CSCA segment comprises of its consumer self-care business in the United States and Canada. It primarily provides its customers self-care products that are sold and marketed under the customer's own brands and/or exclusive brands. The CSCI segment comprises of its consumer self-care business outside of the United States and Canada, primarily in Europe and Australia. These products are developed, manufactured, marketed, and distributed by the Company. Its product categories include Upper Respiratory, Pain and Sleep-Aids, Skincare and Personal Hygiene, Digestive Health, and Nutrition. Its primary branded products are sold under brand names Compeed, Dr. Fresh, Firefly, Good Sense, Mederma, Nasonex, Solpadeine, Coldrex, and Physiomer, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
