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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
Alere Wins Partial Dismissal of Securities Fraud Claims
- Client News
- August 23, 2017
Paul, Weiss secured the dismissal of nearly all claims against Alere Inc. brought by a putative class of Alere shareholders. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and alleges that Alere and three of its executives engaged in securities fraud by improperly recognizing certain revenue for subsidiaries located in Africa and China, failing to disclose that it would need to recall certain diagnostic products from the market, engaged in billing fraud in its toxicology business, violating the Foreign Corrupt Practices Act, and failing to disclose that a subsidiary had erroneously submitted claims to the Center for Medicare and Medicaid Services on behalf of deceased patients. Chief Judge Patti Saris of the District of Massachusetts dismissed all claims except those concerning the recall of the diagnostic product, and dismissed all claims against one of Alere’s executives. In doing so, the court adopted Paul, Weiss’s arguments that the complaint failed to plead a plausible inference that Alere’s senior management was, or should have been, aware of the alleged conduct.