King Pharmaceuticals Settles Shareholder Suit

Law360 (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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.