On January 23, 2020, Saxena White secured a significant victory with a decision issued by the Southern District of New York in In re Perrigo Company PLC Securities Litigation, No. 19-cv-70-DLC. The Honorable Denise L. Cote denied Defendants’ motion to dismiss in part, sustaining Lead Plaintiffs’ claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
In particular, Judge Cote sustained Lead Plaintiffs’ claims that Defendants violated the federal securities laws and Generally Accepted Accounting Principles by failing to disclose the receipt of an Audit Findings Letter from Ireland’s tax authority showing that Perrigo owed approximately $2 billion in taxes on its sale of its rights to the drug Tysabri. As the Court’s order denying Defendants’ motion to dismiss makes clear, “once in receipt of the Audit Findings Letter, the duty to disclose under ASC 450 was indeed obvious. Under the circumstances alleged by plaintiffs, there is a strong inference that Perrigo’s failure to do so was highly unreasonable, representing an extreme departure from the standards of ordinary care.” The case is now in the discovery phase.