Alleged Misstatements On Infant Formula Unit Might Change The Case For Investing In Perrigo (PRGO)

• Bernstein Liebhard LLP and Levi & Korsinsky LLP have filed securities class action lawsuits against Perrigo Company plc, alleging that the company misrepresented the condition and investment needs of its Nestlé-acquired infant formula business, including undisclosed manufacturing deficiencies and required capital expenditures.
• The complaints claim Perrigo’s past disclosures led investors to overestimate the infant formula unit’s operational health and profitability, raising fresh questions about the quality of information underpinning recent views on its turnaround and growth potential.
• We’ll now examine how these allegations about underinvestment and manufacturing issues in Perrigo’s infant formula unit could reshape its broader investment narrative.

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Perrigo Investment Narrative Recap

To own Perrigo, you generally need to believe in its turnaround in self-care and infant nutrition, and its ability to convert operational fixes into sustainable cash flow. The new securities lawsuits go straight to the heart of that story, because they question past disclosures around the infant formula business, which is both a key recovery driver and, after the recent guidance cut, arguably the biggest near term risk. How much they change the thesis will depend on how serious any validated manufacturing and investment gaps prove to be.

Among recent announcements, the November 2025 decision to launch a strategic review of the infant formula unit is most relevant. It directly intersects with the lawsuits’ focus on underinvestment and manufacturing deficiencies, and could influence how investors frame the importance of infant formula to Perrigo’s future, relative to its core US and European OTC businesses and to ongoing cost saving efforts like Project Energize.

Yet, against this backdrop, the real information investors should be aware of is how alleged quality and capex issues could...

Read the full narrative on Perrigo (it's free!)

Perrigo's narrative projects $4.6 billion revenue and $183.6 million earnings by 2028. This requires 1.7% yearly revenue growth and a $243.1 million earnings increase from -$59.5 million today.

Uncover how Perrigo's forecasts yield a $21.50 fair value, a 65% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community currently place Perrigo’s fair value between US$21.50 and about US$58.00, highlighting very different expectations. When you weigh those against the fresh legal allegations around the infant formula unit, it becomes even more important to compare multiple views on how product quality and disclosure risks might affect future performance.

Explore 4 other fair value estimates on Perrigo - why the stock might be worth over 4x more than the current price!

Build Your Own Perrigo Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Perrigo research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Perrigo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perrigo's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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