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13 décembre, 2007 18:34
Biovail Settles Shareholder Class Action Suit for $138 Million
The Associated Press
12-11-2007
Without admitting wrongdoing, major drugmaker Biovail Corp. has agreed to pay $138 million to settle class action shareholder litigation in the United States.
The proposed settlement class includes, with some exceptions, everyone who bought stock in Toronto-based Biovail during the period from Feb. 7, 2003, to March 2, 2004.
The class action lawsuit accused the firm, former chairman Eugene Melnyk and other former executives of making misleading statements to boost Biovail's stock between 2002 and 2003.
The settlement is subject to approval by the U.S. District Court for the Southern District of New York and Biovail estimates it will ultimately pay about $85 million after insurance claims.
"This proposed settlement would eliminate the uncertainty and considerable expense associated with this matter and enable us to use, in much more productive ways, resources we otherwise would have devoted to this litigation," interim chairman and CEO Douglas Squires said in a release Tuesday.
The proposal contains no admission of wrongdoing by Biovail.
