Derivative Suit Against Cephalon Board, CEO Tossed

Law360, New York (August 28, 2009, 6:32 PM EDT) -- A federal judge has dismissed a shareholder derivative suit against biopharmaceutical company Cephalon Inc.'s board and CEO, accusing them of failing to properly oversee the company's sales and promotions practices with respect to the drugs Provigil, Actiq and Gabitril.

In her ruling Wednesday, Magistrate Judge Mary Thynge of the U.S. District Court for the District of Delaware said a significant problem with the complaint, brought by shareholder Jerald King, was its failure to identify which individual directors breached fiduciary responsibility and when those duties were breached....
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