Allergan: Shareholder Suit Filed In Wake Of Botox Settlement
September 07 2010 - 9:58AM
Dow Jones News
Allergan Inc. (AGN) disclosed Tuesday that a shareholder lawsuit
has been filed in connection with its $600 million criminal and
civil settlement with the U.S. government over Botox sales and
marketing.
The dispute with the government involved alleged marketing of
the antiwrinkle treatment--best known for its use in cosmetic
procedures--for uses not approved by the Food and Drug
Administration. The company expects to record third-quarter pretax
charges of $610 million to $615 million in connection with the
settlement.
Botox accounts for about a third of Allergan's revenue and in
the latest quarter saw sales grow 7% to $360.5 million.
The lawsuit, filed Friday in Delaware state court, alleges
breaches of fiduciary duties and seeks to shift settlement costs to
the board. The company is "investigating the action and expects to
contest it vigorously," according to a regulatory filing.
Allergan's shares closed Friday at $63.87 and were inactive
premarket.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240;
matthew.jarzemsky@dowjones.com
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