Allergan To Allocate $130 Million As Settlement To Appease Aggrieved Company Investors
Allergan investors score a win recently as the drug company agreed to pay up $130 million as settlement for the class action filed against them, contending that shareholders were tricked by Allergan regarding their price-fixing schemes.
Company Investors Union Asset Management Holding AG and Sjunde AP-Fonden Score Initial Win
The Allergan Price-Fixing Antitrust Class Action Lawsuit originated from allegations that Allergan purposely increased the price tags on their drugs to up to 7,000%, which ended up hurting investors.
This is because when the news of Allergan’s purported price-fixing schemes were released to the public, company shares fell down, causing losses to shareholders.
Furthermore, the announcement was coupled with investigations initiated by the authorities, eventually leading to federal prosecutors looking into pressing criminal charges against Allergan.
The plaintiffs in the case led by Union Asset Management Holding AG and Sjunde AP-Fonden argued that Allergan inflated its company stock prices along with its drug offerings. They continued that the company has failed to properly disclose and inform their shareholders about their actions leading to the government allegations.
And now, Allergan has agreed to enter into a class action settlement agreement with the complainants, which officially ends the legal proceedings involving the charges filed against them in 2016.
Allergan Price-Fixing Class Action Lawsuit Settlement’s Initial Details
Initial reports suggest that Allergan shareholders who have purchased company stocks between the dates of 29th of October 2013 to 2nd of November 2016 will be covered by the legal proceedings and are eligible to file official claims.
Meanwhile, the investors who act as the plaintiffs in the class action commended that the settlement amount of $130 million was a favorable result for the aggrieved company shareholders.
In their court filing asking for the judge’s official approval for the settlement proceedings to carry on, Union Asset Management Holding AG and Sjunde AP-Fonden have also included their intention to have a Class formation proposal be approved.
Allergan is a drug manufacturer founded in 2013 known for making and selling branded pharmaceutical products. The company serves more than a hundred countries and territories around the world. It is said that Allergan employs almost 18,000 employees in its workforce.
Editor’s Note on Allergan Settlement 2021:
This feature details the latest legal win for Allergan company investors after the drug maker agreed to pay and enter into a settlement with them concerning accusations that Allergan jacked up their drug prices which ended up hurting their stocks.
Case Name(s) & No.(s): In re: Allergan Generic Drug Pricing Securities Litigation; Case No: 2:16-cv-09449
Jurisdiction: United States District Court for the District of New Jersey
Products/Services Involved: Stock prices
Allegation(s): Allergan knowingly deceived its investors about the company’s alleged anti-competitive market behavior that ruffled the feathers of the authorities’ watchful gaze.
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