In 2017, a proposed securities class action was commenced against Endo International plc’s (“Endo”) and two of its former officers, Rajiv K.L. De Silva and Suketu P. Upadhyay, in the Ontario Superior Court of Justice (the “Court”). It is alleged that during the period from January 11, 2016 to and including June 8, 2017 (the “Class Period”), Endo made misrepresentations and omissions regarding: (1) certain antitrust investigation and the corresponding risk to Endo’s pro forma revenues therefrom; (2) the deterioration of Endo’s generic pharmaceutical business; and (3) the abuse of Endo’s product Opana ER and the corresponding risk to Endo’s pro forma revenues from that product’s withdrawal from the market.
On October 1, 2020, the Court approved the Canadian settlement, Plan of Distribution to The Investor Protection Clinic at Osgoode Hall Law School and McGill University Faculty of Law, and reimbursing the case disbursements but limiting legal fees and not allowing an incentive award. One of the recognized reasons is because 99% of the Class share volume is included in the US settlement, see paragraphs 34-36.
As of June 2, 2020, the parties reached a proposed settlement of the class action (the “Agreement”), which is subject to approval by the Court. Under the Agreement, the Defendants will pay or cause to be paid CAD $700,000 in full and final settlement of all claims against them, including Class Counsel’s fees, applicable taxes and expenses, and interest, in exchange for a full release and a dismissal of the class action. The Defendants do not admit any wrongdoing or liability.
The Court will decide whether to approve the Agreement and the fees requested by Class Counsel at a hearing scheduled for September 23, 2020, at the Courthouse located at Osgoode Hall, 130 Queen St. W., Toronto, Ontario. Class Members who wish to exclude themselves from the class action must fill out the Opt-Out Form available below and return it on or before August 24, 2020 at 11:59pm EDT.
- Further details about the proposed settlement may be found in the Court-approved Long Form Notice of Certification and Settlement Approval Hearing, which is available here;
- To view a copy of the proposed Agreement dated June 2, 2020, please click here;
- For a copy of the Order of the Honourable Justice Glustein (unsigned but effective as of June 24, 2020), among other things approving the Notices of Certification and Settlement Approval Hearing and setting a date for the Approval hearing, please click here;
- For a copy of the Endorsement and Reasons for Decision of Justice Glustein dated June 24, 2020, among other things approving the Notices of Certification and Settlement Approval Hearing and setting a date for the Approval hearing, please click here; and
- To Opt-Out (i.e. exclude yourself) from this Action please download, fill out and return the Opt-Out Form, which is available here.
Claim or Motion for Authorization issued: April 25, 2017
Class Period: January 11, 2016 to and including June 8, 2017
Shareholders’ Canadian Counsel: Andrew Morganti & Hadi Davarinia, Morganti & Co., P.C.
Shareholders’ U.S. Counsel: Samuel H. Rudman, Robbins Geller Rudman & Dowd LLP
Shareholders’ Economist: Andrew M. Mintzer, Hemming Morse LLP
Defendants’ Canadian Counsel: Matthew Milne-Smith, Davies Ward Phillips & Vineberg LLP
Defendants’ U.S. Counsel: James Ellis Brandt, Latham & Watkins LLP