Robbins Arroyo LLP: Allergan plc (AGN) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against Allergan plc (NYSE: AGN) in the U.S. District Court for the Central District of California. The complaint is brought on behalf of all purchasers of Allergan securities between February 25, 2014 and November 3, 2016, for alleged violations of the Securities Exchange Act of 1934 by Allergan’s officers and directors. Allergan, a specialty pharmaceutical company, develops, manufactures, markets, and distributes medical aesthetics, biosimilar, and over-the-counter pharmaceutical products worldwide.
Allergan Accused of Misrepresenting Backlog
According to the complaint, Allergan submitted several filings with the U.S. Securities and Exchange Commission which stated that its internal control over financial reporting and disclosure controls and procedures were effective. Allergan also discussed in its filings strategies to achieve growth for its business, stating that it focuses on internal development of differentiated and high-demand products, establishment of strategic alliances and collaborations, and acquisition of products and companies that complement its current business. Allergan further stated that it believed the company was able to effectively compete in the distribution market based on competitive pricing, high inventory levels, and well-established telemarketing relationships with its customers.
The complaint alleges that Allergan failed to disclose that the company was engaging in conduct that would result in an antitrust investigation by the U.S. Department of Justice (“DOJ”) and that the investigation could cause U.S. prosecutors to file criminal charges against Allergan for suspected price collusion. On August 6, 2015, Allergan announced that the company received a subpoena from the DOJ’s Antitrust Division seeking information relating to the marketing and pricing of certain of the company’s generic products and communications with competitors about such products. On August 6, 2015, Bloomberg published an article revealing that U.S. prosecutors may file criminal charges by the end of 2016 for suspected price collusion. On this news, Allergan stock fell $9.07 per share, or over 4% to close at $188.82 per share on November 3, 2016.
Allergan Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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