In re Allergan Generic Drug Pricing Securities Litigation

Court: United States District Court for the District of New Jersey
Case Number: 16-cv-9449
Class Period: 10/29/2013 - 11/02/2016
Case Leaders: John C. Browne, Lauren A. Ormsbee
Case Team: Michael Mathai, Erika Connolly

This is a securities fraud class action on behalf of a class of persons and entities who purchased or otherwise acquired the common and/or preferred stock of Allergan plc (formerly doing business as Actavis plc) (“Allergan”) between October 29, 2013 and November 2, 2016, both dates inclusive (the “Class Period”), and were damaged thereby.

Lead Plaintiffs Have Settled the Action for $130 Million

The Court-appointed Lead Plaintiffs Union Asset Management Holding AG and Sjunde AP-Fonden (“Lead Plaintiffs”), on behalf of themselves and the Settlement Class, have reached a proposed settlement of the Action for $130,000,000 in cash that, if approved, will resolve all claims in the Action (the “Settlement”).

The Settlement Hearing set by the Court to consider final approval of the Settlement, the proposed Plan of Allocation, and Lead Counsel’s motion for attorneys’ fees and expenses is scheduled to be held before the Court on November 17, 2021 at 1:00 p.m. Please Note: The date and time of the Settlement Hearing may change without further written notice to the Settlement Class. In addition, the ongoing COVID-19 health emergency is a fluid situation that creates the possibility that the Court may decide to conduct the Settlement Hearing by telephonic or video conference, or otherwise allow Settlement Class Members to appear at the hearing by phone or video, without further written notice to the Settlement Class. In order to determine whether the date and time of the Settlement Hearing have changed, or whether Settlement Class Members must or may participate by phone or video, it is important that you monitor the Court’s docket and this website, before making any plans to attend the Settlement Hearing. Any updates regarding the Settlement Hearing, including any changes to the date or time of the hearing or updates regarding in-person or telephonic/video appearances at the hearing, will be posted to this website. Also, if the Court requires or allows Settlement Class Members to participate in the Settlement Hearing by telephone or video conference, the information needed to access the conference will be posted to this website.

If you are a member of the Settlement Class, your rights will be affected, and you may be eligible for a payment from the Settlement. The Settlement Class consists of the following three subclasses:

(1) as to claims arising under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (“Exchange Act”), all persons and entities who purchased or otherwise acquired Allergan plc (before June 15, 2015, known as Actavis plc) common and/or preferred stock between October 29, 2013 and November 2, 2016, both dates inclusive, and were damaged thereby;

(2) as to claims arising under Section 14(a) of the Exchange Act in connection with the merger between Actavis plc and Forest Laboratories, Inc. (i.e., Forest Merger), all persons and entities who held Forest common stock as of May 2, 2014, and were entitled to vote on the Forest Merger, and acquired shares of Allergan common stock in the Forest Merger and were damaged thereby; and

(3) as to claims arising under Section 14(a) of the Exchange Act in connection with the merger between Actavis plc and Allergan, Inc. (i.e., Actavis Merger), all persons and entities who held Allergan, Inc. common stock as of January 22, 2015, and were entitled to vote on the Actavis Merger, and acquired shares of Allergan common stock in the Actavis Merger and were damaged thereby.

Excluded from the Settlement Class are certain persons and entities (see paragraph 29 of the Notice) or those who request exclusion pursuant to the instructions set forth in the Notice (see paragraphs 55 to 59 of the Notice), which is posted under the Case Documents section of this page.

Please read the Notice to fully understand your rights and options. Copies of the Notice and Claim Form can be found on the Case Documents section of this page. You may also visit the Settlement website, www.AllerganDrugPricingSecuritiesLitigation.com, for more information about the proposed Settlement.

If you are a member of the Settlement Class, in order to be potentially eligible to receive a payment from the Settlement, you must submit a Claim Form by mail postmarked no later than December 27, 2021, or online using the Settlement website, www.AllerganDrugPricingSecuritiesLitigation.com, no later than December 27, 2021.

Payments to eligible claimants will be made only if the Court approves the Settlement and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing. Please be patient, as this process will take some time to complete.

YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT:

SUBMIT A CLAIM FORM POSTMARKED (IF MAILED), OR ONLINE, NO LATER THAN DECEMBER 27, 2021.

This is the only way to be eligible to receive a payment from the Net Settlement Fund. If you are a Settlement Class Member and you remain in the Settlement Class, you will be bound by the Settlement as approved by the Court and you will give up any Released Plaintiffs’ Claims (defined in ¶ 35 in the Notice) that you have against Defendants and the other Defendants’ Releasees (defined in ¶ 36 in the Notice), so it is in your interest to submit a Claim Form.

EXCLUDE YOURSELF FROM THE SETTLEMENT CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN OCTOBER 27, 2021.

If you do not like the proposed Settlement, the proposed Plan of Allocation, and/or the request for an award of attorneys’ fees and Litigation Expenses, you may write to the Court and explain why you do not like them. You cannot object to the Settlement, the Plan of Allocation, and/or the fee and expense request unless you are a Settlement Class Member and do not exclude yourself from the Settlement Class. 

OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS RECEIVED NO LATER THAN OCTOBER 27, 2021.

If you do not like the proposed Settlement, the proposed Plan of Allocation, and/or the request for an award of attorneys’ fees and Litigation Expenses, you may write to the Court and explain why you do not like them. You cannot object to the Settlement, the Plan of Allocation, and/or the fee and expense request unless you are a Settlement Class Member and do not exclude yourself from the Settlement Class. 

PARTICIPATE IN A HEARING ON NOVEMBER 17, 2021 AT 1:00 P.M., AND FILE A NOTICE OF INTENTION TO APPEAR SO THAT IT IS RECEIVED NO LATER THAN OCTOBER 27, 2021.

Filing a written objection and notice of intention to appear by October 27, 2021 allows you to speak in Court, at the discretion of the Court, either in person or by video or telephonic conference as required or allowed by the Court, about the fairness of the proposed Settlement, the proposed Plan of Allocation, and/or the request for an award of attorneys’ fees and Litigation Expenses. If you submit a written objection, you may (but you do not have to) attend the hearing and, at the discretion of the Court, speak to the Court about your objection.

DO NOTHING.

If you are a member of the Settlement Class and you do not submit a valid Claim Form, you will not be eligible to receive any payment from the Net Settlement Fund. You will, however, remain a member of the Settlement Class, which means that you give up your right to sue about the claims that are resolved by the Settlement and you will be bound by any judgments or orders entered by the Court in the Action.

 

The Litigation

This case asserts claims against Allergan and its top executives for violation of Sections 10(b) and 14(a) of the Securities Exchange Act of 1934. Specifically, Lead Plaintiffs allege that Defendants reported robust financial results to the market, attributed those results to entirely legitimate business factors and conditions, and assured investors that both the Company’s pricing practices and the generic drug market in which it operated were highly competitive. The Complaint alleges that, in truth, Allergan’s financial results were driven in material part by the Company’s collusion with competitors to dramatically increase the prices of at least six generic drugs. The Complaint further alleges that the truth about Allergan’s price fixing scheme was revealed to investors in two disclosures on August 6, 2015 and November 3, 2016.

On February 2, 2017, the Court appointed Union Asset Management as co-Lead Plaintiff for the action along with Sjunde AP-Fonden. On May 1, 2017, Lead Plaintiffs filed an initial Amended Complaint. Defendants moved to dismiss that complaint. That motion was fully briefed when, on October 31, 2017, a consortium of 46 state Attorneys General filed a complaint charging Allergan as an alleged co-conspirator in an antitrust price-fixing conspiracy. This complaint described several “smoking gun” calls, emails and text between Allergan executives and other co-conspirators. On November 28, 2017, Lead Plaintiffs filed a Second Amended Complaint, which included newly-discovered information, including information revealed in the Attorneys General’s complaint.

Defendants filed a renewed motion to dismiss on January 22, 2018. The motion was fully briefed in April 2018, and was argued on April 11, 2019.

On August 6, 2019, the Court denied Defendants’ motion to dismiss, and discovery in the case commenced. Plaintiffs’ motion for class certification was filed March 20, 2020, and was fully briefed on January 14, 2020. Fact discovery closed on March 31, 2021, with expert discovery scheduled to close on October 29, 2021.