Allergan Investors Sue Board Over Tax Tab For Exec Pay

Law360, New York (November 23, 2011, 8:04 PM EST) -- Allergan Inc.'s board of directors was hit Monday with a shareholder derivative suit alleging it issued a misleading statement asking shareholders to approve a defective executive compensation plan that cost the pharmaceutical company millions in tax benefits.

In a complaint filed in Delaware federal court, the New Jersey Building Laborers Pension Fund said Allergan's March 8 proxy statement requesting shareholder approval of the 2011 incentive plan claimed the plan would be tax-deductible if the stockholders signed off on an amendment to it.

But even with approval,...
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