ROSENBLOOM v. PYOTT

No. 12-55516.

765 F.3d 1137 (2014)

Willa ROSENBLOOM, derivatively on behalf of Allergan, Inc.; Daniel Himmel; Pompano Beach Police & Firefighters Retirement System; Washington Laborers-Employers Pension Trust, aka Western Washington Laborers Employers Pension Trust, Plaintiffs-Appellants, v. David E.I. PYOTT; Herbert W. Boyer, aka Herbert W. Boyer, M.D.; Louis J. Lavigne, Jr.; Gavin S. Herbert; Stephen J. Ryan, aka Stephen J. Ryan, M.D.; Leonard D. Schaeffer; Michael R. Gallagher; Robert A. Ingram; Trevor M. Jones, aka Trevor M. Jones, Ph.D.; Dawn E. Hudson; Russell T. Ray; Deborah Dunsire, aka Deborah Dunsire, M.D.; Allergan, Inc., a Delaware corporation; Handel E. Evans; Ronald M. Cresswell; Louis T. Rosso; Karen R. Osar; Anthony H. Wild, Defendants-Appellees.

United States Court of Appeals, Ninth Circuit.

Filed September 2, 2014.


Attorney(s) appearing for the Case

Joseph D. Daley (argued), Travis E. Downs III , and David W. Mitchell , Robbins Geller Rudman & Dowd, Brian J. Robbins and Felipe J. Arroyo , Robbins Arroyo , Kathleen A. Herkenhoff , The Weiser Law Firm, San Diego, CA; Aelish M. Baig , Robbins Geller Rudman & Dowd, San Francisco, CA; Robert B. Weiser , Brett D. Stecker , and Jeffrey J. Ciarlanto , The Weiser Law Firm, Berwyn, PA, for Plaintiffs-Appellants.

Mark A. Perry (argued) and Geoffrey C. Weien , Gibson, Dunn, & Crutcher, Washington, D.C.; Wayne W. Smith , Jeffrey H. Reeves , and Kristopher P. Diulio , Gibson, Dunn, & Crutcher, Irvine, CA, for Defendants-Appellees.

John C. Hueston , Daniel P. Lefler , and Lillie A. Werner , Irell & Manella, Los Angeles, CA, for Nominal Defendant-Appellee.

Before: STEPHEN REINHARDT, JOHN T. NOONAN, and MARY H. MURGUIA, Circuit Judges.


OPINION

REINHARDT, Circuit Judge:

Allergan, a specialty pharmaceutical manufacturer, produces Botox, a well-known cosmetic and therapeutic drug. In 2010, faced with allegations that it had acted illegally in marketing and labeling Botox, Allergan settled several qui tam suits and pled guilty in a criminal case. Allergan ultimately paid a total of $600 million in part for civil settlements and in part as a criminal fine. Shortly afterward, Plaintiffs...

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