King Pharmaceuticals Settles Shareholder Suit

Law360, New York (August 28, 2008, 12:00 AM EDT) -- King Pharmaceuticals Inc. has agreed to pay $13.5 million in legal fees and make changes to its corporate governance to settle a shareholder derivative lawsuit that accused the company of breaching its fiduciary duty by underpaying commitments to Medicaid.

The company revealed the settlement in a U.S. Securities and Exchange Commission filing on Wednesday. The case was filed in 2003 in state court in Tennessee, where King is headquartered.

According to the complaint, King underpaid rebates owed to the federal and state governments under Medicaid and...
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