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LOUISIANA MUNICIPAL POLICE v. PYOTT

C.A. No. 5795-VCL.

46 A.3d 313 (2012)

LOUISIANA MUNICIPAL POLICE EMPLOYEES' RETIREMENT SYSTEM and U.F.C.W. Local 1776 & Participating Employers Pension Fund, Plaintiffs, v. David PYOTT, Herbert W. Boyer, Louis J. Lavigne, Gavin S. Herbert, Stephen J. Ryan, Leonard D. Schaeffer, Michael R. Gallagher, Robert Alexander Ingram, Trevor M. Jones, Dawn E. Hudson, Russell T. Ray, and Deborah Dunsire, Defendants, and Allergan, Inc., Nominal Defendant.

Court of Chancery of Delaware.

Decided June 11, 2012.

Attorney(s) appearing for the Case

Pamela S. Tikellis , Robert J. Kriner, Jr. , Scott M. Tucker , Chimicles & Tikellis LLP, Wilmington, Delaware; Scott R. Shepherd , Shepherd, Finkelman, Miller & Shah, LLP, Media, Pennsylvania; Lesley E. Weaver , Shepherd, Finkelman, Miller & Shah, LLP, San Francisco, California; Jeffrey W. Golan , Lisa M. Lamb , Barrack, Rodos & Bacine, Philadelphia, Pennsylvania, Attorneys for Plaintiffs.

Kenneth J. Nachbar , Shannon E. German , Morris, Nichols, Arsht & Tunnell LLP, Wilmington, Delaware; Wayne W. Smith , Jeffrey H. Reeves , Kristopher P. Diulio , Gibson, Dunn & Crutcher LLP, Irvine, California, Attorneys for Defendants.

Cathy L. Reese , Jose P. Sierra , Joseph B. Warden , Fish & Richardson P.C., Wilmington, Delaware, Attorneys for Nominal Defendant Allergan, Inc.

OPINION

LASTER, Vice Chancellor.

On September 1, 2010, Allergan, Inc. entered into a settlement with the United States Department of Justice pursuant to which Allergan pled guilty to criminal misdemeanor misbranding and paid a total of $600 million in civil and criminal fines. Various specialized plaintiffs' law firms quickly filed derivative actions in both this Court and in the United States District Court for the Central District of California...

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