Credit: Tom Sofield/LevittownNow.com
A settlement has been reached in a class-action lawsuit led by Bucks County after officials said county workers’ retirement funds were taken through fraud.
In a Tuesday announcement, Bucks County government officials said a settlement between Endo International, an American and Irish pharmaceutical firm, and a class of investors had been agreed to. The parties filed a stipulation that a settlement had been reached last Friday in federal court.
Advertisements
If approved by a judge, the settlement would total $63.4 million. County officials said the final amount that would come to Bucks County has not yet been calculated.
The county’s retirement fund estimated they lost $800,000 in the alleged fraud. Loses by other investors were said to have totaled in the millions of dollars, but the Bucks County Employees Retirement System was the single largest victim.
Law 360 reported the lawsuit was filed in November 2017. It claimed Endo International “colluded with its competitors to simultaneously increase the prices of 13 drugs, while not disclosing to investors the true reasons for the $620 million in profits the company reaped.”
Advertisements
Records from U.S. District Court for the Eastern District of Pennsylvania showed the parties have been discussing a settlement since August.
“This administration is committed to combating fraud, protecting consumer rights, and pursuing recovery of funds for our employees’ retirement system,” Bucks County Commissioner Diane Ellis-Marseglia said in a statement. “Bucks County government is proud of both the outstanding employee retirement benefits we offer, and the vigilance of our legal counsel, and we will always seek to hold accountable anyone who defrauds us.”
Advertisements
“With this recovery, Bucks County is holding Endo accountable for the harm it caused investors, including the Retirement Fund, concerning its massive generic drug price increases,” said County Controller Neale Dougherty, who serves as Secretary of the Bucks County Employees Retirement System Board.
The county law department represented the Bucks County Employees Retirement System, with support from law firms Saxton & Stump and Robbins Geller Rudman & Dowd LLP.
“As lead plaintiff, the county oversaw an enormous legal effort, including a massive fact discovery and contentious litigation over whether a class of investors should be certified in the case,” the statement from the county said.
Advertisements
In a similar case, Bucks County is taking part in a securities fraud class-action lawsuit against AdaptHealth Corporation. The county alleges the employee retirement system lost $56,757.95 in that alleged fraud.
Last Thursday in that case, Bucks County was appointed to serve as co-lead plaintiff with the Delaware County Employees Retirement System.
Advertisements
The Bucks County Retirement System Board is made up of Marseglia, Dougherty, County Treasurer Kris Ballerini, and county Commissioners Bob Harvie and Gene DiGirolamo.
Report a correction via email | Editorial standards and policies
