Labaton Sucharow Recovers $95 Million in Securities Class Action Against Biotech Titan Amgen Inc.NEW YORK (July 20, 2016) – Labaton Sucharow is pleased to announce a $95 million settlement, subject to court approval, with global biotechnology company Amgen Inc. and certain of its former executives in In re Amgen Inc. Securities Litigation, No. 07-cv-02536 (C.D. Cal.). The Firm serves as sole court-appointed lead counsel on behalf of lead plaintiff Connecticut Retirement Plans and Trust Funds (Connecticut Retirement) and the Office of Connecticut State Treasurer Denise L. Nappier.
The action alleges that the company made misleading statements and omissions concerning the safety and marketing of two of its flagship products—anti-anemia drugs Aranesp and Epogen—including statements that were at odds with clinical studies.
“Whenever we believe that our state’s pension fund losses are attributable to corporate malfeasance, we go after the money. In the Amgen matter, we fought all the way to the Supreme Court,” said Treasurer Nappier, who serves as the principal fiduciary to Connecticut Retirement.
In 2013, Labaton Sucharow, working with Catherine E. LeMarr, General Counsel to the Office of the Connecticut Treasurer, helped secure a landmark ruling from the Supreme Court of the United States in this same action against Amgen. Amgen had appealed the U.S. District Court for the Central District of California’s 2009 ruling to certify the class. The appellate process eventually led to Amgen filing a petition requesting that SCOTUS hear its appeal. In Amgen Inc. v. Conn. Ret. Plans & Trust Funds, the Supreme Court ruled that investors seeking to certify a case as a class action do not need to prove the securities fraud element of materiality at the class certification stage—a major victory for plaintiffs in securities class action cases.
“After more than nine years of earnest litigation, asset recovery validates the decision to serve as lead plaintiff. Of longer-term value is the Supreme Court opinion, which preserves shareholder rights into the future,” said LaMarr.
After the case was remanded back to the district court, it was led by a formidable team of Labaton Sucharow attorneys, which included partners Thomas A. Dubbs, Christopher J. McDonald, Louis Gottlieb, and James W. Johnson, with assistance from attorneys Richard T. Joffe, Irina Vasilchenko, James Ostaszewski, and Jeffrey A. Dubbin.
With less than a month before trial and after completing discovery, which entailed analyzing nearly 23 million pages of documents, taking or defending 52 depositions, and reviewing 36 expert reports, the parties reached a tentative agreement to settle the case.
Labaton Sucharow partner Thomas A. Dubbs said, “After overcoming several obstacles spanning many years of litigation, we are glad to conclude this matter and secure a favorable settlement for the class.”