According to the press release February 26, 2011, the Complaint asserts that, during the Class Period, Defendants made materially false and misleading statements about a transaction between Elan and Johnson & Johnson (“JNJ”). Specifically, the Complaint asserts that Defendants stated that JNJ had agreed to pay $1 billion for 18.4% ownership of Elan and 50.1% ownership of a new company, Janssen Alzheimer Immunotherapy (“Janssen”), a subsidiary formed by JNJ to acquire Elan's Alzheimer’s immunotherapy program, but that Defendants failed to disclose that the agreement with JNJ violated the terms of an existing collaboration agreement between Elan and Biogen Idec Inc. (“Biogen”) for the development and sale of the multiple sclerosis drug Tysabri. As the Complaint alleges, Elan was ultimately forced to renegotiate its agreement with JNJ, whereby JNJ paid $115 million less to Elan than previously agreed. When the potential breach of the Elan/Biogen agreement became public, requiring the renegotiation of the JNJ transaction, the price of Elan’s ADSs declined as artificial inflation came out of the price of those securities.
On May 3, 2011, the Court issued an order appointing Thomas H. Bown II as lead plaintiff and approved Shepherd, Finkelman, Miller & Shah, LLP, as lead counsel.
On June 21, 2011, the Court issued an order granting Defendant's motion to withdraw its motion to dismiss without prejudice to re-file at a later date.
The lead plaintiff filed an amended complaint on June 27, 2011, setting forth the allegations that the Defendant violated Sections 10(b) and 20(a) of the Exchange Act along with Rule 10b-5.
On October 18, 2011, the Court issued an Order granting the Defendant's Motion to Dismiss in its entirety, however, granted the Plaintiff 30 days leave to file an amended complaint.
On November 10, 2011, the Court issued an order dismissing the action with prejudice.