SAN DIEGO, Sept. 13, 2010 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed by an Allergan investor in State Court against members of Allergan's board in effort to hold them liable for a $600 million settlement with the Department of Justice over alleged off-label uses of its Botox drug.
Current long term investors in Allergan, Inc. (NYSE:AGN) common stock, should contact the Shareholders Foundation by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
Allergan, Inc, located in Irvine, California, is a multi-specialty health care company focused on developing and commercializing pharmaceuticals, biologics and medical devices.
According to the complaint the plaintiff claims that members of Allergan's board should be held liable and should pay for the recently reached $600 million settlement since the Allergan's board approved the so-called off-label marketing plans for Botox as part of Allergan's strategic plans and ignored repeated violations of federal law governing the sales and marketing of drugs. Last Wednesday Allergan reached a $600 million settlement in Georgia federal court to resolve criminal and civil allegations that Allergan actively promoted the wrinkle-smoothing drug Botox, its top-selling product, for unapproved medical uses. The US Justice Department alleged that Allergan tried to boost Botox sales by encouraging doctors, including paying kickbacks, to prescribe the drug for uses the FDA hadn't authorized. Allergan agreed to plead guilty to one misdemeanor charge. In a statement Allergan said it agreed that its marketing from 2000 to 2005 had resulted in the use of Botox for unapproved uses, including the treatment of headache, pain, spasticity and juvenile cerebral palsy. Allergan also settled civil claims linked to three whistleblower lawsuits, but denied liability with regard to the civil claims. As part of the settlement, Allergan entered into a five-year corporate-integrity agreement with the government that involves additional corporate monitoring by an outside party and other compliance measures. The plaintiff in the lawsuit filed against members of the board of directors wants also that Allergan's chairman and chief executive officer David Pyott should be forced to return some of that compensation since he directly benefited from the Botox sales through increases to his compensation package.
Those who purchased Allergan, Inc. (NYSE:AGN) common stock, should contact the Shareholders Foundation.
The Shareholders Foundation, Inc. is an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The group offers help, support, and assistance for every shareholder, and investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 mail@shareholdersfoundation.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108