BR&B Seeks $600 Million for Allergan in Derivative Action

9/3/2010 - Barrack, Rodos & Bacine has filed a derivative action for the Louisiana Municipal Policeman’s Employee Retirement System on behalf of the pharmaceutical company Allergan, Inc., and its shareholders and against the members of the Allergan board of directors, for breach of fiduciary duty of loyalty and waste arising from Allergan’s unlawful promotion of its flagship drug BOTOX® for uses not approved as safe and effective by the U.S. Food and Drug Administration (FDA). The complaint alleges that the promotion of off-label uses for BOTOX®, which constituted a violation of applicable FDA rules and regulations, included paying kickbacks to doctors and other outside consultants and was a key priority and part of the Company’s strategic plan. The filing of the derivative complaint followed an announcement that the Company pleaded guilty to a “misbranding” charge and is paying $600 million to resolve its criminal and civil liability pursuant to an agreement with the U.S. Department of Justice, which includes the settlement of three whistle-blower cases that had been brought against the Company. The case, Louisiana Municipal Policeman’s Employee Retirement System v. Pyott, et al., Case No. 5795, is pending in the Delaware Court of Chancery.

If you have any questions about this case, please contact BR&B partner Jeffrey W. Golan by telephone at (215) 963-0600 or by email at jgolan@barrack.com.