In mid-July 2016, Amgen Inc. ("Amgen" or the "Company"), a global biotechnology firm, concluded nearly a decade of class action litigation by agreeing to a $95 million settlement with investors. Originating in 2007, the suit alleged that Amgen made misleading statements about the safety and marketing of anti-anemia drugs, Aranesp and Epogen, which included statements that were at odds with clinical studies, and falsely projected a positive direction for the Company that investors bought into. Consequently, the price of Amgen stock was overinflated because of the misleading statements, a violation of the Securities Exchange Act.
The Connecticut Retirement Plans and Trust Funds ("Connecticut Retirement Plan") was appointed lead plaintiff and, in 2009 convinced the district court to certified a class of Amgen stock purchasers. After the class was certified, Amgen appealed the decision to the Ninth Circuit Court of Appeals, and after that court affirmed, to the U.S. Supreme Court. The Supreme Court also upheld certification.
A month before trial, there was a breakthrough in settlement discussions, which were mediated by the retired Federal Judge Dickran M. Tevrizian; Amgen agreed to pay $95 million to investors on the stipulation that it not admit to any liability or wrongdoing. The settlement class consisted of all individuals who purchased Amgen securities from April 22, 2004 to May 10, 2007.
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Source: Daniels, Melissa. "Amgen To Pay $95M In Class Action Securities Settlement." Law360. Portfolio Media, Inc. 20 July 2016.