LAMPERS v. Allergan


Oral Argument
02/05/13 – 02/05/13


Hearing on motion to dismiss.

Via Bloomberg: "Allergan Inc. directors should be held liable for opening up the maker of wrinkle smoother Botox to criminal sanctions and a $600 million settlement by allowing the drug to be marketed for unapproved uses, investors said in a lawsuit.

Allergan’s board approved so-called off-label marketing plans for Botox as part of the company’s strategic plans and ignored repeated violations of federal law governing the sales and marketing of drugs, a Louisiana pension fund said in its Delaware Chancery Court lawsuit. The suit seeks to force directors to return money to the company to offset the settlement payout.

Allergan, based in Irvine, California, agreed Sept. 1 to plead guilty to a single misdemeanor charge in settling a U.S. probe of its Botox marketing practices. The company will pay $375 million in criminal fines and $225 million to resolve civil claims filed by the U.S. Justice Department.

“The off-label marketing practices have already caused injury to the company and will continue to cause harm by virtue of the fines it has agreed to pay in connection with those illegal sales and marketing practices,” the fund’s lawyers said in the Sept. 3 complaint."


The Court of Chancery's judgment denying appellee's motion to dismiss was reversed. Jurisdiction was not retained.


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