On May 3, 2011, the Honorable Shira A. Scheindlin of the United States District Court for the Southern District of New York appointed Lead Plaintiff and approved the selection of Shepherd, Finkelman, Miller & Shah, LLP, as Lead Counsel in the securities action captioned, Engstrom et al. v. Elan Corporation, PLC et al., Civil Action No. 11-01232. This litigation was filed on behalf of all persons or entities who purchased publicly traded stock or American Depository Shares (“ADSs”) of Elan Corporation, PLC (“Elan” or the “Company”) between July 2, 2009 and August 5, 2009 (the “Class Period”).
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. It is alleged that Elan was ultimately forced to renegotiate its agreement with JNJ, whereby JNJ paid $115 million less to Elan than previously agreed.