Tuesday, June 12, 2012

Judge rules Allergan shareholders may proceed with Botox suit.


Bloomberg News (6/12, Feeley, Milford) reports, "Allergan Inc. investors can seek to hold directors responsible for criminal sanctions and a $600 million penalty that the maker of the wrinkle smoother Botox was ordered to pay for marketing the drug for unapproved uses, a judge ruled." Bloomberg continues, "Two pension funds who contend that Allergan's board failed to properly oversee executives who marketed Botox for ailments that hadn't been approved by regulators have amassed enough evidence about the illegal sales effort to proceed with their claims, Delaware Chancery Court Judge Travis Laster concluded" on Monday. "The funds' allegations 'support a reasonable inference that the board consciously approved a business plan predicated on violating the federal statutory prohibition against off-label marketing,' Laster said in his 82-page ruling." 

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