Allergan Beats Workers’ ERISA Appeal Alleging Drug Price-Fixing

Allergan PLC defeated a proposed class action by employees who said they lost retirement savings because of the company’s participation in a generic drug price-fixing scheme, when the Third Circuit ruled Friday that the employees didn’t present sufficient allegations of illegal conduct.

The employees’ claims under the Employee Retirement Income Security Act are premised on the idea that the fiduciaries of their 401(k) plan knew or should have known about the company’s illegal conduct and taken action to protect the plan from losses tied to a drop in Allergan’s stock price, the court said. But the employees didn’t allege that ...