- Company Name
- Allergan plc
- Stock Symbol
- Class Period
- February 24, 2017 to December 19, 2018
- Motion Deadline
- February 19, 2019
- Southern District of New York
The complaint charges Allergan and certain of its officers with violations of the Securities Exchange Act of 1934. Allergan is a pharmaceutical company that develops, manufactures, and commercializes branded pharmaceutical, device, biologic, surgical, and regenerative medicine products worldwide.
Through its Medical Devices business, the Company produces silicone breast implants, which are used to augment breast size or to reconstruct the breast following mastectomy or to correct a congenital abnormality. Breast implants consist of a silicone outer shell and a filler (most commonly silicone gel or saline) and come in a variety of forms, including smooth and textured. In June 2011, the FDA issued an Update on the Safety of Silicone Gel-Filled Breast Implants, which reported a link between breast implants and Anaplastic Large Cell Lymphoma (“ALCL”). Following the FDA’s Update, information was added to the product’s labeling, but the added warnings are deeply embedded in a dense list of complications.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business, operations and prospects, including that textured breast implants manufactured by Allergan were linked to ALCL and that the foregoing link, when revealed, would foreseeably force Allergan to recall textured breast implants from the market. As a result of this information being withheld from investors, the price of Allergan shares was artificially inflated to more than $250 per share during the Class Period.
On December 18, 2018, France’s National Agency for the Safety of Medicines & Health Products ordered the recall of textured breast implants manufactured by Allergan from the European market, stating that the implants “have been linked to a rare form of cancer”—specifically, ALCL. On December 19, 2018, Allergan stated that it would remove its textured breast implants from the European market. Following these announcements, the price of Allergan shares fell $10.20 per share, or nearly 7%, to close at $136.56 per share on December 19, 2018.