Elan Agrees to Settle SEC and Investor Cases
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Elan Corp., Ireland’s biggest drug maker, said it would pay $75 million to settle a shareholder lawsuit and a $15-million fine to resolve a Securities and Exchange Commission complaint related to the company’s accounting.
The company said $35 million of the settlement’s cost would be covered by insurance. The company did not admit wrongdoing.
Elan said three weeks ago that it would take a $55-million charge in its first-half results to cover legal costs related to the investor suit and the SEC probe. The government investigated how Elan accounted for Bermuda-based investments that kept some costs off the books. The practices also sparked the shareholder suit.
The settlements are subject to approval in court and by the SEC.
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