In morning trade on Tuesday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is dropping lower. At the time of writing the benchmark index is down 0.4% to 5,918.1 points.
Four shares that have fallen more than most today are listed below. Here’s why they are tumbling lower:
The Insurance Australia Group Ltd (ASX: IAG) share price has fallen 2% to $4.54. This morning the insurance giant revealed that it has settled the class action brought against it by Johnson Winter & Slattery. These proceedings relate to add-on insurance products sold through motor vehicle and motorcycle dealers. The settlement involves a gross payment of $138 million and is subject to approval by the Federal Court of Australia.
The Mayne Pharma Group Ltd (ASX: MYX) share price has crashed 17% lower to 31.5 cents after the release of an update. The pharmaceutical company advised that it has received a response from the US Food and Drug Administration (FDA) in relation to its abbreviated new drug application for a generic version of NUVARING. The FDA has raised questions about the application, which Mayne Pharma will address in a timely manner.
The Mesoblast limited (ASX: MSB) share price is down 2% to $3.48. This appears to have been driven by profit taking after a strong rebound in the Mesoblast share price on Monday. The biotech company’s shares have been very volatile since the FDA rejected its remestemcel-L application pending further trials.
The Temple & Webster Group Ltd (ASX: TPW) share price has fallen 4% to $11.74 despite there being no news out of the online furniture retail company. However, with the Temple & Webster share price up 360% year to date prior to today, I wouldn’t be surprised if some of this decline is related to profit taking from investors.