Investigations
ICON plc
Overview
Overview
- Deadline:
- Apr 11, 2025
| Company Name: | Company Name: ICON plc |
| Stock Symbol: | Stock Symbol: ICLR |
ICON plc (NASDAQ: ICLR): ICON plc (“ICON” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in ICON stock. The case is pending in the Eastern District of New York and is captioned Shing v. ICON plc, et al., No. 25-cv-00763.
If you incurred losses on your investments in ICON, you are encouraged to submit your information.
Why was ICON Sued for Securities Fraud?
ICON is a clinical research organization (“CRO”) that provides a range of services to help its pharmaceutical company customers bring new drugs to market. In recent years, many large pharmaceutical companies have implemented drastic cost reduction programs, including shifting part of their clinical studies in-house and away from CROs like ICON.
Despite these industry trends, ICON repeatedly represented that client demand was robust and that the company was benefiting from the trends. However, in truth, ICON’s business had significantly deteriorated due to customer cost reduction measures and industry funding limitations.
The Stock Declines as the Truth is Revealed
On October 23, 2024, ICON revealed a quarterly “revenue shortfall” that missed analyst estimates by more than $100 million. The company also revealed that indicators of customer demand, such as net new business, had materially deteriorated, that two of its large pharmaceutical customers had significantly curtailed upcoming work, and that numerous other customers had cancelled, delayed, or reduced the scope of ongoing and planned trials. As a result, ICON cut its annual revenue guidance for 2024 by $220 million.
Two days later, on October 25, 2024, Truist Securities published a report after speaking with ICON’s management which revealed the company had known for some time that it was losing business from its two largest customers. Specifically, ICON management told Truist that the loss of business from its two largest customers was “not a new development” and it “did not come as a surprise” that customers were diversifying CRO providers and moving business to its competitors. This news caused a more than 20% decline in the price of ICON stock over a two-day trading period, from a closing price of $280.76 per share on October 23, 2024 to $220.47 per share on October 25, 2024.
Then, on January 14, 2025, ICON issued financial guidance for 2025 that came in well below analysts’ expectations which the company attributed to the downturn in the industry. This news caused the price of ICON stock to decline more than 8%, from a closing price of $217.99 per share on January 13, 2025 to $200.24 per share on January 14, 2025.
What are my Rights?
If you invested in ICON, you may ask the Court no later than April 11, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in ICON, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in ICON, you are encouraged to submit your information.
Why was ICON Sued for Securities Fraud?
ICON is a clinical research organization (“CRO”) that provides a range of services to help its pharmaceutical company customers bring new drugs to market. In recent years, many large pharmaceutical companies have implemented drastic cost reduction programs, including shifting part of their clinical studies in-house and away from CROs like ICON.
Despite these industry trends, ICON repeatedly represented that client demand was robust and that the company was benefiting from the trends. However, in truth, ICON’s business had significantly deteriorated due to customer cost reduction measures and industry funding limitations.
The Stock Declines as the Truth is Revealed
On October 23, 2024, ICON revealed a quarterly “revenue shortfall” that missed analyst estimates by more than $100 million. The company also revealed that indicators of customer demand, such as net new business, had materially deteriorated, that two of its large pharmaceutical customers had significantly curtailed upcoming work, and that numerous other customers had cancelled, delayed, or reduced the scope of ongoing and planned trials. As a result, ICON cut its annual revenue guidance for 2024 by $220 million.
Two days later, on October 25, 2024, Truist Securities published a report after speaking with ICON’s management which revealed the company had known for some time that it was losing business from its two largest customers. Specifically, ICON management told Truist that the loss of business from its two largest customers was “not a new development” and it “did not come as a surprise” that customers were diversifying CRO providers and moving business to its competitors. This news caused a more than 20% decline in the price of ICON stock over a two-day trading period, from a closing price of $280.76 per share on October 23, 2024 to $220.47 per share on October 25, 2024.
Then, on January 14, 2025, ICON issued financial guidance for 2025 that came in well below analysts’ expectations which the company attributed to the downturn in the industry. This news caused the price of ICON stock to decline more than 8%, from a closing price of $217.99 per share on January 13, 2025 to $200.24 per share on January 14, 2025.
What are my Rights?
If you invested in ICON, you may ask the Court no later than April 11, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in ICON, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.