San Francisco, CA: (Apr-29-08) A securities class action lawsuit was brought against Warner Chilcott Ltd., a pharmaceutical company, by plaintiffs who claimed that they suffered losses as a result of acquiring Warner Chilcott stock in connection with its initial public offering (IPO) in September 2006. Company spokespersons stated that in a recent development in the case, the company has agreed to resolve the class action suit by paying $16.5 million, ending litigation that was pending in the US District Court for the Southern District of New York.
Warner Chilcott officials said that the cash payment is expected to be made in the second or third quarter of 2008, and the majority of the settlement will be funded by insurance proceeds. It was also announced that the payout will not have a material financial impact on the company. The company said in a prepared statement that the settlement does not constitute any admission of wrongdoing. [
