Diebold agreed to pay the SEC and the DOJ almost $50 million for systemic violations of the FCPA. Diebold’s board of directors owe Diebold shareholders certain fiduciary duties. This investigation then asks a series of questions as to how Diebold’s board of directors handled its obligation to put in place FCPA compliance measures.
ViroPharma (VPHM) and Shire announced that the two companies have entered into a definitive merger agreement whereby Shire will acquire ViroPharma. The transaction, including debt, values ViroPharma at approximately $4.2 billion. Under the terms of the proposal, public shareholders of ViroPharma will receive $50.00 in cash for each share of VPHM common stock they own.
Federal authorities are investigating Caesars Entertainment for alleged money laundering activities. This investigation then asks a series of questions as to how Caesars board of directors handled its obligations to develop, monitor and oversee the company’s compliance with federal and state laws prohibiting money laundering and other illegal banking activities.
Amarin shareholders took it on the chin this fall. The value of the stock declined over 70%. This is unquestionably because an FDA advisory panel refused to approve Vascepa (Amarin’s flagship therapy) for treatment of “mixed dyslipidemia” after the completion of a phase III clinical study that indeed seemed to show that Vascepa safely reduced triglycerides levels in patients with mixed dyslipidemia. The advisory panel made its recommendation because it reached the conclusion that any approval must wait until to results are available of a longer clinical trial of Vascepa that is addressing the basic question of whether the reduction of triglycerides levels in fact has positive cardiovascular benefits. This securities fraud class action then addresses the question of whether senior executives at Amarin properly disclosed the risks of non approval to investors.