Elan Corporation, plc (ADR) investor files lawsuit over alleged securities laws violations

Feb. 28, 2011 - PRLog -- An investor in American Depository Shares of Elan Corporation, plc  filed a lawsuit in the United States District Court for the Southern District of New York against Elan Corporation, PLC over alleged violations of Federal Securities Laws.

If you purchased publicly traded stock or American Depository Shares (“ADSs”) of Elan Corporation, plc (ADR)  between July 2, 2009 and August 5, 2009, you have certain options and there are strict and short deadlines running. Deadline: April 22, 2011. Those ELN stockholders should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges on behalf of those who purchased publicly traded stock or American Depository Shares (“ADSs”) of Elan Corporation, PLC  between July 2, 2009 and August 5, 2009, that Elan Corporation, PLC, its President and CEO G. Kelly Martin, CFO Shane Cooke violated the Securities Exchange Act of 1934 by issuing between July 2, 2009 and August 5, 2009 materially false and misleading statements about a transaction between Elan Corp. and Johnson & Johnson.
Specifically, the plaintiff alleges that Defendants stated that Johnson & Johnson. had agreed to pay $1 billion for 18.4% ownership of Elan Corp. PLC and 50.1% ownership of a new company, Janssen Alzheimer Immunotherapy (“Janssen”), a subsidiary formed by Johnson & Johnson to acquire Elan Corp's Alzheimer’s immunotherapy program, but that Defendants failed to disclose that the agreement with Johnson & Johnson. violated the terms of an existing collaboration agreement between Elan Corp. PLC and Biogen Idec Inc. for the development and sale of the multiple sclerosis drug Tysabri. As the Complaint alleges, Elan Corp. PLC was ultimately forced to renegotiate its agreement with Johnson & Johnson., whereby Johnson and Johnson. paid $115 million less to Elan Corp. PLC than previously agreed. When the potential breach of the Elan/Biogen agreement became public, requiring the renegotiation of the Johnson & Johnson  transaction, the price of Elan Corp. PLC’s ADSs declined as artificial inflation came out of the price of those securities, so the complaint.

In fact shares of Elan Corporation, plc (ADR) (Public, NYSE-ELN) traded during 2006 at $12.50 and increased in 2008 to as high as $34.90, before falling from $33.64 on July 25 to $9.93 on August 1st 2008. During March 2009 ELN shares traded as low as $5 per share. ELN shares rose from $6.78 on July 10, 2009 to $8.29 during August 4 and then fell to $7.64 on August 6th. Recently ELN ADRs traded at $6.38 per share.

While Elan’s 12month Total Revenue went from $759.40million in 2007 to $1,169.70million in 2010, Elan Corporation, plc (ADR) had to report a Net Loss of $405million in 2007 and a Net Loss of $324.70million in 2010.

Those who purchased publicly traded stock or American Depository Shares (“ADSs”) of Elan Corporation, plc (ADR) (Public, NYSE-ELN) between July 2, 2009 and August 5, 2009, have certain options and there are strict and short deadlines running. Deadline: April 22, 2011. Those ELN stockholders should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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