Kessler Topaz is co-lead counsel in a securities fraud class action brought on behalf of Allergan plc shareholders during the period from October 29, 2013 to November 2, 2016, based on the company’s participation in a conspiracy to fix the prices of generic drugs.
The plaintiffs allege that Allergan conspired with other pharmaceutical manufacturers to raise and artificially maintain the prices of several drugs, including doxycycline and propranolol, among others. Notwithstanding Allergan’s involvement in this illicit price-fixing, the company made repeated misrepresentations to investors regarding the purportedly competitive nature of its pricing.
The plaintiffs’ allegations are supported by Allergan’s receipt of a subpoena from the U.S. Department of Justice seeking information related to the company’s marketing and pricing of generic drugs. Additionally, in October 2017, Allergan was named as a defendant in a complaint filed by the Attorneys General of 46 states in a civil action based on Allergan’s and its co-conspirators’ illegal agreements to fix the prices of multiple generic drugs. The Attorneys General complaint contains detailed allegations regarding specific phone calls and other communications between Allergan and rival drug manufacturers in furtherance of the price-fixing scheme.
This action is pending before the Honorable Katherine S. Hayden of the U.S. District Court for the District of New Jersey. The defendants’ motion to dismiss the plaintiffs’ consolidated second amended class action complaint is due to be filed on January 22, 2018.