Eagle Pharmaceuticals Faces Class Action Lawsuit and CEO Resignation Amid Accounting Scandal

The company admits to improper accounting and anticipates restating its Q2 and Q3 2023 results, triggering a default under its $100 million credit agreement.

• Eagle Pharmaceuticals is facing a class action lawsuit due to allegations of misleading investors by overstating its revenue and having ineffective internal controls over financial reporting.
• The lawsuit covers investors who purchased Eagle Pharmaceuticals securities between August 8, 2023 and November 28, 2023.
• The company's CEO, Scott Tarriff, resigned on November 29, 2023, following the allegations.
• Eagle Pharmaceuticals has admitted to improper accounting and anticipates restating its results for the second and third quarters of 2023.
• The company's inaccurate financial reporting has triggered a default under its $100 million revolving line of credit agreement, presenting the risk that lenders could call outstanding amounts due or foreclose on the company's assets.

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