INC Research Holdings, Inc. ("INCR" or the Company) provides Phase I to Phase IV clinical development services to pharmaceutical, biotechnology, and medical device companies.

According to the law firm press release, on August 1, 2017, the Company announced that it completed a Merger with inVentiv Health, Inc. (“inVentiv”). And, the Company represented to investors that the Merger was the beginning of an industry-changing company, with high expectations for revenue growth and profitability. However, on November 9, 2017, the first quarter after the Merger, INCR reported a net loss of $88.9 million, as well as impairment charges to the Company’s intangible assets. Analysts noted that the Company’s fourth quarter guidance was worrisome given the challenges that inVentiv’s commercial business faced.

On this news, the Company’s stock price fell $16.35 per share, or 28.4%, to close at $41.15 per share on November 9, 2017, on unusually heavy trading volume. The Company’s share price continued to fall over the next three trading sessions, closing on November 14, 2017 at $34.35 per share, a total decline of $23.15 per share, or 40.3%.

The Complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose: (1) that the Merger was not providing the benefit that Defendants stated it would; (2) that inVentiv was underperforming; (3) that, as a result, the Company’s 2017 financial performance would be negatively impacted; and (4) that, as a result of the foregoing, Defendants’ statements about INCR’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

This case was voluntarily dismissed on March 30, 2018. A related case continues under Docket 18-CV-00029 in the Eastern District of North Carolina.

On May 29, 2018, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on July 30, 2018. Defendants filed a Motion to Dismiss the amended Complaint on September 20. On August 30, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Plaintiffs did not amend the Complaint, and on October 21, the Court entered Judgment and closed the case.

Lead Plaintiffs filed a notice appealing the Court's Final Judgment and Dismissal Order on November 19, 2021. On July 24, 2023, the Court of Appeals affirmed the District Court's Judgment.