Back on December 16, 2013, we reported that several larger institutional holders of legacy Schering-Plough (and/or legacy Merck) had apparently timely opted-out of the $668 million settlement, and decided to pursue their federal securities claims in an individual suit, in the United States District Court in Newark, New Jersey.
Now, we report on another large institutional holder, following those same tracks in the snow. GIC Private Limited (previously known as Government of Singapore Investment Corporation Pte Ltd.) has also brought suit, in its own name — for trading losses (allegedly) occassioned by the delayed ENHANCE disclosures. GIC held, at various times, well over a million shares. [Here is a PDF of the monstrous 173 page complaint at law.] Of course, these same predicate facts point at Fred, Carrie, Tom, Tom, and Brent — as have all the other suits. And, as we now know, all the D&O insurance has been exhausted, here. So there is (finally!) at least the possibility of some real personal liability, and personal check-writing, now. Some personal financial pain for Mr. Hassan, et al.
As I said previously, I’ll pop the popcorn, here. From Senator Grassley’s 2008 letter then:
. . . .A heart patient deserves to know if his medicine lowers cholesterol but doesn’t change his cardiovascular condition. The decision to take a particular drug is personal, and people have the right to the whole picture.
Drug makers and drug developers violate the public interest when they work to muzzle the scientific process and fight disclosure of newly emerging information about various pharmaceuticals in order to drive up their sales and profits. Everyone wants new life-enhancing and life-saving therapies. . . . [P]atients and others deserve to have information in order to weigh the risks, benefits and unknowns for themselves. . . .
United States Senator
Committee on Finance
We shall see how these well-heeled opt-outs turn out. Should be entertaining to see Fred Hassan have to give even more depositions “about what he DIDN’T know, and when he didn’t know it“. Hardly.