Philip Morris International Inc. (PM) Misled Investors Regarding the Company’s Business Prospects
According to the filed class action complaint against the company’s officers and directors for alleged violations of the Securities Exchange Act of 1934 between February 8, 2018 and April 18, 2018. Philip Morris announced its results for the quarter and year ended December 31, 2017, touting a strong growth trend and the exceptional performance of its smoke-free product IQOS. According to Philip Morris Chief Executive Officer André Calantzopoulos, “returns on our investment to accelerate consumer switching this year will mostly be realized next year, further improving year-over-year comparisons. So EPS results in 2019 are very likely to be better than those this year.” However, the company’s financial results for the quarter ended March 31, 2018, which were announced on April 19, 2018, were dismal. The company revealed that shipment volumes had declined by 2.3%, it was not converting the “more conservative adult smoker segments” as previously promised, and that IQOS was not faring as well internationally as originally projected. On this news, Philip Morris’ stock saw a one-day decline of $15.80 per share, or more than 26%, and has yet to recover.
Philip Morris International Inc. (PM) Shareholders Have Legal Options
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