Assertio shareholder calls for four board members to resign

Keystone/Hulton Archive via Getty Images An investment firm with a 1% stake in Assertio Holdings ( NASDAQ: ASRT ) is demanding that four members of the company's board, including its chairman, resign immediately. In a letter to Chairman Peter Staple, the Buxton Helmsley Group has "grave concerns" that the current board is not capable of overseeing development and implementation of the company's strategic plan, holding management responsible for executing it, and establishing management compensation with the right incentives. Buxton Helmsley in particular takes issue with the company's handling of its April 2023 deal to acquire Spectrum Pharmaceuticals.

"Assertio first came to our attention because of its perplexing and highly suspicious disclosures related to the acquisition of Spectrum," the letter reads. "The Company’s inability to explain these disclosures, even after attestation by a dual CPA-Certified Fraud Examiner as to the irregularities and a need for an independent investigation, and this Board’s unwillingness to allow an investigation by unconflicted parties, heightened our concerns." Buxton Helmsley added it will pursue a proxy fight if a "constructive solution" is not reached.

Assertio shares are down ~72% over the last year. More on Assertio Holdings Assertio: An Extremely Asymmetric Bet Skewed To The Upside Assertio Holdings, Inc. (ASRT) Q1 2024 Earnings Call Transcript H.

C. Wainwright starts Assertio at buy, calls stock underrated, overlooked Assertio Hold.