VTRS Lawsuit Alert! Class Action Lawsuit Against Viatris Inc.
A class action lawsuit was filed against Viatris Inc. (VTRS) by Levi & Korsinsky on April 4, 2025. The plaintiffs (shareholders) alleged that they bought VTRS stock at artificially inflated prices between August 8, 2024 and February 26, 2025 (Class Period) and are now seeking compensation for their financial losses. Investors who bought Viatris stock during that period can click here to learn about joining the lawsuit.
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Viatris is a healthcare company that boasts a broad, global portfolio that comprises products that help treat the top 10 leading causes of death globally, as determined by the WHO.
The company’s inadequate and misleading disclosures related to the failed inspection of its Indore, India, facility and the products subject to the U.S. Food and Drug Administration’s (FDA) warning letter are at the heart of the current complaint.
Viatris’ Misleading Claims
According to the lawsuit, Viatris and two of its senior officers (Individual Defendants) repeatedly made false and misleading public statements throughout the Class Period. Particularly, they are accused of omitting truthful information about the failed inspection of the company’s Indore, India facility, and the products subject to an FDA warning letter from SEC filings and related material.
For instance, in the annual report filed the SEC on February 28, 2024, for instance, the company stated that its facilities are in “good operating condition, the machinery and equipment are well-maintained, the facilities are suitable for their intended purposes, and they have capacities adequate for the current operations.”
Further, in a December 23, 2024 press release, Viatris disclosed that following an inspection by the U.S. FDA at its oral finished dose manufacturing facility in Indore, India, the regulatory body issued a warning letter and an Import Alert. The company added that following the FDA’s original inspection observations, it immediately implemented a comprehensive remediation plan at the site, and does not anticipate this matter to impact its 2024 guidance ranges.
However, subsequent disclosures (discussed below) revealed that Viatris had misled investors about the inspection and the FDA’s warning letter.
Plaintiffs’ Arguments
The plaintiffs maintain that the defendants deceived investors by lying and withholding critical information about Viatris’ business practices and prospects during the Class Period. Importantly, the defendants are accused of misleading investors regarding the inspection of VTRS’ Indian facility and related matters.
The truth was revealed on February 27, 2025, when Viatris released its fourth quarter and Fiscal 2024 results and issued a disappointing guidance for Fiscal 2025, citing the negative impact of the FDA inspection and subsequent developments. The company also provided details about the FDA inspection in its 10K filing. Viatris stated that following the FDA’s inspection of its Indore facility in 2024, the agency issued a warning letter. The FDA also issued an Import Alert related to the facility, which the company said affects 11 actively distributed products that will no longer be accepted into the U.S. until the warning letter is lifted.
The company added that while its product continues to be shipped from the Indore facility to markets outside the U.S., it expects some impact in other markets, including the ARV business in Emerging Markets and select generic products in Europe. Viatris mentioned that it expects an adverse impact of around $500 million on 2025 revenue and about $385 million on earnings from operations.
Following the disclosure, VTRS stock plunged more than 15% on February 27.
To conclude, the defendants allegedly misled investors about key facts related to the FDA inspection of Viatris’ Indore facility in India, the agency’s warning letter, and its impact on the company’s business. Given these issues, VTRS stock has declined more than 19% over the past three months, causing notable damage to shareholder returns.
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