Case Page

 

Case Status:    SETTLED
On or around 05/11/2012 (Other)

Filing Date: November 01, 2006

According to a press release dated September 17, 2008, Warner Chilcott, Ltd. settled a securities fraud class-action lawsuit pending in the U.S. District Court for the Southern District of New York. In November 2006, the company and certain of its officers were named as defendants in the matter, "Albano v. Warner Chilcott Limited et al.," a class-action suit filed in the U.S. District Court for the Southern District of New York. Subsequently, similar purported class action lawsuits were filed. On April 25, 2008, the company reached an agreement in principle to settle the class-action lawsuit. The terms of the settlement, which are subject to negotiation of definitive documentation and must be approved by the court, include a cash payment of $16,500,000, which is expected to be made to the plaintiffs during 2008. The majority of the settlement will be funded by insurance proceeds and it will not have a material adverse impact on the company's financial position, results of operations or cash flows.

The judge certified the class and consolidated related cases on March 21, 2007. The Consolidated complaint was filed on May 4, 2007. Defendants did not move to dismiss and filed their answer to the complaint on June 18, 2007. The discovery proceedings have begun.

According to a press release dated November 1, 2006, the complaint charges Warner Chilcott and certain of its officers and directors with violations of the Securities Act of 1933. The Company is engaged in the development, manufacture, sale, and marketing of branded prescription pharmaceutical products in women's healthcare and dermatology primarily in the United States.

Specifically, the complaint alleges the Registration Statement issued in connection with the IPO contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the complaint alleges that the Registration Statement failed to disclose that at the time of the IPO, Warner Chilcott had ceased shipments of Ovcon 35, its top selling birth control pill, thereby eliminating a primary revenue stream for the Company.

The complaint further alleges that on or around September 26, 2006, Warner Chilcott announced developments in a lawsuit brought against it by the Federal Trade Commission and filed a supplement to the Registration Statement in which it disclosed that, among other things, it had ceased shipments of Ovcon 35 in September 2006 when it launched Ovcon Chewable. In response to these disclosures the price of Warner Chilcott common stock dropped from $15.00 per share to $12.60 per share on extremely heavy trading volume.

On February 4, 2008, a Memorandum And Order was entered by the court appointing lead plaintiff and lead counsel.

On April 22, 2009, an Order For Disbursement Of Funds To Pay Claims Administrator From Court Registry Investment System was submitted with the court.

On September 25, 2009, order for disbursement of funds to pay claims administrator from court registry investment system was entered in the court record.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Major Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WCRX
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 06-CV-11515
JUDGE: Hon. William H. Pauley, III
DATE FILED: 11/01/2006
CLASS PERIOD START: 09/20/2006
CLASS PERIOD END: 09/26/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kenneth A. Elan (former NY)
    217 Broadway Suite 404, Kenneth A. Elan (former NY), NY 10007
    212.619.0260 ·
  2. Klafter & Olsen LLP (Washington)
    1250 Connecticut Ave., N.W. Suite 200, Klafter & Olsen LLP (Washington), DC 20036
    202.261.3553 202.261.3533 · info@klafterolsen.com
  3. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  5. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 06-CV-11515
JUDGE: Hon. William H. Pauley, III
DATE FILED: 05/04/2007
CLASS PERIOD START: 09/20/2006
CLASS PERIOD END: 09/26/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, 42 Street)
    60 East 42 Street, Abraham, Fruchter & Twersky (New York, 42 Street), NY 10021
    212.687.6655 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  3. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
No Document Title Filing Date