Endo International Plc.

Beginning in approximately February 2022, after The Buxton Helmsley Group, Inc. ("BHG") and its affiliates had established a net short position in Endo International plc's common stock, Alexander E. Parker, on behalf of BHG, entered into a series of private correspondence with Endo and its board of directors, setting out allegations of breaches of Irish law and of fiduciary duty, self-dealing, and violations of financial disclosure standards. After Endo withdrew its initial request that BHG participate in a closed-door meeting convened to address what the company termed Mr. Parker's "misplaced concerns," BHG made the previously private correspondence public as part of a May 13, 2022 open letter addressed to Endo's shareholders and creditors.

The Approach

Within five days of that open letter, The Wall Street Journal reported that Endo had entered restructuring negotiations initiated by its first-lien creditors—news that drove a decline of more than 60% in the company's share price in a single trading session on May 18, 2022. Shortly thereafter, Mr. Parker issued a follow-on open letter to Endo's board of directors demanding compliance with applicable GAAP standards, most notably ASC 350, in light of what BHG characterized as the continued material overstatement of goodwill carried on the company's balance sheet.

The Outcome

On August 9, 2022, days after Mr. Parker's follow-on letter, Endo's leadership recognized a goodwill impairment of nearly $2 billion on the company's balance sheet—representing more than 20% of the total asset value the company had reported in the prior quarter.

A week later, on August 16, 2022, Endo filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York (Case No. 22-22549).

Relevant Disclosure

The investor-engagement campaign described above was conducted by The Buxton Helmsley Group, Inc., which was previously authorized to use the "Buxton Helmsley" trademark. The Buxton Helmsley Group, Inc. is in no way affiliated with Buxton Helmsley, Inc. or its affiliated entities. The foregoing is relevant to Buxton Helmsley, Inc. and its affiliated entities solely by reason of their employment of the same key principal, Alexander E. Parker.