Lannet Company, Inc. (NYSE: LCI)
Lannett company is off to an overwhelmingly rough day in the market today. When the market opened, the stock spiked downward. While it has been on a slow, yet steady upward trend for some time now, the stock has been in the red all day and hasn’t looked like a full recovery would be possible. Now, the stock is spiking further down on a report from Citron Research. Below, we’ll talk about what we’re seeing from LCI, why, and what we’ll be watching for ahead.
What We’re Seeing From LCI
As mentioned above, Lannett Company isn’t having the best of days in the market today. Unfortunately, the stock went on a dive early on. After trying to recover, the stock was still nowhere near the break even point. Nonetheless, things went from bad to worse in what seemed like no time flat just minutes ago as it started spiking further downward. Currently (11:43), LCI is trading at $18.90 per share after a loss of $1.40 per share or 6.90% thus far today.
Why The Stock Is Falling
Our partners at Trade Ideas were the first to inform us of the declines on LCI. As soon as they did, the CNA Finance team started digging to see exactly what was causing the movement. In this particular case, it didn’t take long to find the story. It seems as though the declines are being caused by the fact that Citron Research just took a swipe at the stock.
Recently, Lannett Company settled a lawsuit for what seemed to be a good price. However, this is just one of thousands of cases the company is facing at the moment, as mentioned in previous posts here on CNA Finance. These cases have the ability to completely bankrupt LCI, and today, Citron released a report saying the same. Here’s the tweet by Citron Research that started the movement.
Citron exposes the lawsuits that will drive Lannett (LCI) to 0. Price gouging and leverage at its worst in pharma. https://t.co/Fn9MwJO3Xn
— Citron Research (@CitronResearch) January 17, 2017
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on LCI. In particular, we are interested to see how the company does in ongoing legal battles it faces. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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[Image Courtesy of Pixabay]