Allergan Stock Losses Spawn ERISA Class Action

Allergan plc’s connection to an alleged price-fixing scheme among generic drug makers spawned a proposed class action Feb. 14, with an Allergan employee claiming he lost retirement savings by investing in the company’s stock (Xie v. Inv. Comm. & Benefits Oversight Comm. of Allergan Inc. Sav. & Inv. Plan, C.D. Cal., No. 8:17-cv-00271, complaint filed 2/14/17).

The complaint accuses Allergan’s benefits plan committee and the company’s chief financial officer, Maria Teresa Hilado, of failing to protect workers from a 23 percent drop in Allergan’s stock price in connection with an ongoing Department of Justice investigation into price collusion ...