According to the Form 10-Q for the quarterly period ended March 31, 2000, on April 12, 2000, the United States District Court for the Central
District of California (the "Central District Court") held a final settlement
hearing. On April 20, 2000, the Central District Court entered a final judgment
approving the settlement and an order dismissing the litigation with prejudice.
As reported in the Company's Form 10-K for the fiscal year ended December 31, 1999, in October 1998, the Company obtained a stay of the state court action and,
in February 1999, filed a motion to dismiss the federal action. In June 1999,
before the motion to dismiss was decided, the parties entered into a memorandum
of understanding regarding settlement of the Securities Litigation. On February
17, 2000, the parties filed an amended stipulation of settlement in the federal
court. On February 18, 2000, the federal court entered an order preliminarily
approving the settlement and providing for notice. The order provides for
certification of a settlement class and for notice of the contemplated
settlement to the members of the settlement class. The settlement provides
generally for a settlement of $1 million to be distributed among eligible
members of the settlement class who purchased shares of the Company's common
stock during the Class Period and later sold such stock at a net loss, and who
file proofs of claim as prescribed in the notice. The settlement contemplates
that the named plaintiffs and members of the settlement class will release
Amgen and the named defendants from certain claims and that the Securities
Litigation will be dismissed with prejudice.
The original complaint charges Amgen and certain of its officers with violations of the securities laws. The complaint alleges that Amgen and several of its senior executives issued false statements between January 23, 1997 and August 11, 1997 regarding: (i) the demand for and sales growth of Amgen's two flagship products, Epogen and Neupogen, block-buster billion-dollar drugs that had made Amgen a successful biotech company and enabled it to report strong earnings per share ("EPS") growth in the past; (ii) an arbitration proceeding between Amgen and Johnson & Johnson regarding entitlement to millions of dollars in "spill- over" sales of Epogen; and (iii) Amgen's 4thQ 1996 and 1stQ and 2ndQ 1997 results.