Judge Tosses Elan Shareholder Suit Over $1B J&J Deal

Law360, New York (October 18, 2011, 6:39 PM EDT) -- A New York federal judge on Tuesday tossed a shareholder class action alleging biotechnology company Elan Corp. PLC failed to disclose that a proposed $1 billion deal with Johnson & Johnson violated an agreement with Biogen Idec Inc.

In granting Elan's dismissal motion, U.S. District Judge Shira A. Scheindlin said the shareholders failed to plead facts that the company, CEO G. Kelly Martin and former Chief Financial Officer Shane Cooke had a motive to defraud investors or acted recklessly when Elan breached its agreement with Biogen,...
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