BFA Secures Ruling for Shareholders; Claims Against Endo Pharmaceuticals to Proceed as Court Denies Motion to DismissFebruary 14, 2020
BFA defeated a motion to dismiss claims of Endo investors, who are seeking to hold the generic drug company accountable for concealing that Endo’s financial performance was driven by unsustainable and anticompetitive price increases of its generic pharmaceuticals. In a February 14, 2020 decision, Judge Michael M. Baylson of the Eastern District of Pennsylvania largely denied defendants’ motions to dismiss.
In his order, Judge Baylson upheld the claims against Endo’s Chief Executive Officers and its CFO. The Court ruled that “Lead Plaintiff’s allegations that the [executives] exercised direct and exclusive control of prices, alongside [the executives’] intimate knowledge of those prices and their significant effect on Endo’s overall finances, require the Court to infer that Lead Plaintiff can prove” its claims of securities fraud.
The case arises from Endo’s astounding price increases on over one dozen of Endo’s generic drugs. Those price increases generated over $600 million in pure profit for the company between 2014 and 2017 while, at the same time, Endo’s officers denied that the company relied on any price increases. Once the scheme came to a sudden halt, Endo’s revenues, profits, and share price collapsed.
As a result, shareholders who purchased Endo securities in the United States between March 2, 2015 and February 27, 2017, were damaged as the price of Endo securities fell once the truth came out.
Joseph Fonti and Javier Bleichmar of BFA serve as lead counsel to Lead Plaintiff Park Employees’ and Retirement Board Employees’ Annuity and Benefit Fund of Chicago, and the proposed class. A copy of Judge Baylson’s opinion can be found under Downloads to the right.