A long-running shareholder battle over alleged quality control deception has reached a pivotal moment, as investors in the former drugmaker Mylan seek court approval of a mylan investor $60m settlement they say offers meaningful recovery after years of high-stakes litigation.
In a filing Wednesday, investors told a federal court that they struck a $60 million agreement with Mylan NV — now operating as Viatris Inc. — and several of its executives following a December mediation session.
Allegations of Manipulated Quality Controls
The investors, led by the Public Employees’ Retirement System of Mississippi, accused the company of manipulating quality control measures at a West Virginia manufacturing facility and misleading shareholders about the integrity of those systems.
According to their brief seeking preliminary approval, the proposed $60 million settlement balances the steep risks and costs of continuing litigation.
“Considering the foregoing risks as well as the time and expense of continued litigation, the $60 million settlement provides a favorable result for the settlement class and represents a meaningful percentage of the settlement class’s potential recoverable damages,” the filing stated, citing estimates from the lead plaintiff’s damages expert.
The investors have asked the U.S. District Court for the Western District of Pennsylvania to grant preliminary approval and certify a settlement class so that notice can be sent to potentially hundreds or thousands of affected shareholders.
The proposed class would encompass all individuals and entities who purchased or otherwise acquired publicly traded Mylan common stock between Feb. 16, 2016, and May 7, 2019, and allegedly suffered financial losses.
