Avanir Faces Investor Suit Over 'Tax Deductible' Claims

Law360, New York (January 17, 2014, 3:37 PM EST) -- Avanir Pharmaceuticals Inc. was hit with a proposed class action Tuesday accusing the firm of misleading investors ahead of a shareholder vote that it could give out tax-deductible performance executive compensation awards despite allegedly being ineligible for such deductions since 2011.

In a complaint filed in California federal court, Avanir shareholder Robert Masters sought to enjoin an upcoming shareholder vote in February on issues including executive pay and plans to increase shares for future awards, arguing that the firm is trying to continue with tax-deductible performance-based...
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