SFMS Files Class Action Lawsuit Against Elan Corporation, PLC
February 25th, 2011
SFMS announces that it has filed a lawsuit seeking class action status in the United States District Court for the Southern District of New York (Civil Action No. 11 CV 01232 SAS) on behalf of all persons or entities who purchased publicly traded stock or American Depository Shares ("ADSs") of Elan Corporation, PLC (NYSE: ELN)("Elan" or the "Company") between July 2, 2009 and August 5, 2009 (the "Class Period"). A copy of the Complaint may be obtained from the Court, or you can either call our office toll free at (866) 540-5505 to speak with an attorney regarding this matter, or email us (email@example.com; firstname.lastname@example.org) and we will send you a copy of the Complaint.
The Complaint asserts claims under the federal securities laws against Elan, G. Kelly Martin, the Company's President and Chief Executive Officer and Shane Cooke, Elan's Chief Financial Officer.
Among other things, 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.
If you purchased stock or ADSs of Elan during the Class Period, you may qualify to serve as lead plaintiff on behalf of the Class. All motions for appointment as lead plaintiff must be filed with the Court by no later than April 25,2011. Any member of the proposed Class may move the Court to serve as lead plaintiff in this action through counsel of their choice, or may remain an absent Class member. There are certain legal requirements to serve as lead plaintiff, which we would be pleased to discuss with you. Please contact Patrick A. Klingman or Karen M. Leser-Grenon by email (email@example.com; firstname.lastname@example.org)or telephone toll-free at (866) 540-5505, if you would like to discuss this action or have any questions regarding this notice or your rights.