Biotech firm Amgen Inc. has agreed to pay $95 million under a tentative agreement to settle a class action filed on behalf of investors who bought its securities between April 2004 and May 2007, Connecticut Treasurer Denise Nappier announced Wednesday night.
Connecticut Retirement Plans and Trust Funds, of which Nappier is principal fiduciary, was the lead plaintiff in Connecticut Retirement v. Amgen Inc, et al.
"We have diligently pursued this action for nearly a decade. This settlement will assist institutional and individual investors in recovering some of their lost assets," said Nappier. "Whenever we believe that our state's pension fund losses are attributable to corporate malfeasance, we go after the money."
The suit alleged that Amgen, of Thousand Oaks, Calif., and some of its former executives made misleading statements and omissions regarding the safety and marketing of two of its flagship products – anti-anemia drugs Aranesp and Epogen – including statements that were at odds with clinical studies.
Settlement documents were filed Wednesday with the U.S. District Court for the Central District of California, which must approve the deal.
After approval, a claims process will determine pro rata shares of losses. How much each investor receives will depend on the number of claims filed and how the court apportions the $95 million, according to Nappier's office.
"Amgen believes the action has no merit, and the settlement does not constitute any admission by Amgen of any liability or wrongdoing," the company said in a statement on its website. "Nonetheless, it is desirable and beneficial to Amgen and its shareholders to resolve the case as further litigation would be burdensome and protracted."
The case began in 2007, when District Court Judge Philip Gutierrez appointed Connecticut Retirement as the lead plaintiff on behalf of investors who purchased the publicly traded securities of Amgen from April 22, 2004 through May 10, 2007.
Amgen appealed a 2009 order by the District Court to certify the class, which eventually led to the company asking a review from the U.S. Supreme Court. The top court rejected Amgen in 2013 in a 6-3 ruling, with Justice Ruth Bader Ginsberg writing the majority opinion.
State Attorney General George Jepsen's office helped on the Supreme Court appeal and in settlement discussions. Labaton Sucharow LLP represented the state. Its team included partners Thomas Dubbs, Christopher McDonald, Louis Gottlieb and James Johnson, with assistance from attorneys Richard Joffe, Irina Vasilchenko, James Ostaszewski and Jeffrey Dubbin.
Class litigation is a part of the state Treasury's asset recovery and loss prevention program, which Connecticut .established in 2000. According to Nappier's office, the initiative has helped recover more than $1 billion for the state's pension funds.
"After more than nine years of earnest litigation, asset recovery validates the decision to serve as lead plaintiff," said Treasury general counsel Catherine LaMarr. "Of longer-term value is the Supreme Court opinion, which preserves shareholder rights into the future."
