The Canadian Commercial Workers Industry Pension Plan has settled its class-action shareholder lawsuit against the pharmaceutical maker Biovail.
Under the terms of the settlement agreement, the parties have agreed that the sole source of compensation for the plaintiffs will be the settlement amount previously agreed to in the proposed settlement of the parallel U.S. securities class action. Under the terms of that agreement, the total settlement amount payable is US$138 million
In a statement of claim, filed three years ago, the CCWIPP alleged that it lost nearly C$500,000 on its investment in Biovail because it relied on “false and misleading statements” about the company’s business and financial position between February 2003 and March 2004.
During that time, Biovail’s stock jumped more than 50% to $69.68 but then dropped to as low as $21.50.
The settlement agreement contains no admission of wrongdoing by Biovail or any of the named individual defendants, nor is the company or any of the individual named defendants acknowledging any liability or wrongdoing by entering into the agreement.
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