Forest Laboratories to settle shareholders' suit for $65 million
This article was originally published in Scrip
Forest Laboratorieshas reached a tentative settlement of $65 million in a securities class action suit in which it was alleged that the company provided misleading information about the safety of Celexa (citalopram) and Lexapro (escitalopram), according to the law blog productliabilitylaw360. In its most recent 10-Q filing with the SEC, Forest stated that it had entered a memorandum of understanding dated September 22nd with regard to securities litigation, setting forth an agreement in principle to settle all claims for $65 million; details of the litigation were not provided. "While we believe the settlement is covered by our insurance and we are engaged in discussions with the carriers concerning the liability for the payment, during the September 2008 quarter we recorded a $25 million reserve in connection with the MOU," the company said.