Allergan Inc. got a court win earlier this month when the Delaware Supreme Court ruled that its board of directors won’t have to face investor lawsuits over a federal penalty the company paid on improper marketing of its flagship drug, Botox, in 2010.
The Louisiana Municipal Police Employees Retirement System and UFCW Local 1776 pension funds—which are Allergan shareholders—sued Allergan’s board in Delaware’s Court of Chancery after the federal settlement.
Allergan dealt with a separate group of shareholders who sued its directors in U.S. District Court in California over the penalty for off-label marketing of Botox. That case was thrown out—a decision that formed the basis for Allergan’s argument in the Delaware affair.
Delaware Chancery Court Judge Travis Laster let the case proceed, although Allergan wanted it thrown out.
The Delaware high court ruled that Laster erred and should have given the California ruling the “same force and effect it would be entitled to in the California federal or state courts,” it wrote in its opinion.
Justices said that Delaware’s “undisputed interest” in governing its corporations’ internal affairs “must yield to the stronger national interest that all state and federal courts have in respecting each other’s judgments.”
Allergan is “pleased with the ruling,” said Bonnie Jacobs, a company spokesperson.
More for Griffin-American
Newport Beach-based real estate investor Griffin-American Healthcare REIT has spent $46 million on five medical office buildings near Denver, Atlanta, Indianapolis and Detroit.
Griffin-American said the deals take its portfolio of healthcare real estate to a value of $1.42 billion, based on purchase prices. There are 153 buildings in the portfolio in 28 states; properties include medical offices, nursing homes, hospitals and assisted-living facilities.
Griffin-American bought the properties from various sellers.
The healthcare REIT was previously a unit of the former Grubb & Ellis Co., which has since been combined with Newmark Knight Frank to form New York-based Newmark Grubb Knight Frank.
Griffin Capital Corp. and American Healthcare Investors LLC took over sponsorship of the REIT at the end of 2011.
Biologic Gets OK
Irvine-based Harbor MedTech Inc. said it received marketing clearance from the Food and Drug Administration for its initial product, an advanced collagen biologic tissue called Architect.
The product is designed to treat partial and full-thickness skin wounds, according to Harbor MedTech.
The company said in a release that Architect could be used for treating diabetic foot ulcers, venous leg ulcers, pressure ulcers, and other trauma or surgery-related skin wounds.
Harbor has a link to one of the larger OC medical device makers. In 2011 it bought a process that transforms animal tissue into biologic medical products from Irvine-based Edwards Lifesciences Corp.
Salus in Artesia Buy
Salus Homecare Inc. of Irvine has completed its buy of Aspen Home Health and Rehab in Artesia on undisclosed terms.
Salus provides various home healthcare services.
Aspen will be renamed Salus Home Health.
Salus appointed Glenda Wellington to run the agency.
Buying Aspen, “a certified Medicare provider in home health, strengthens Salus’ offerings in the evolving healthcare landscape, where home-based care is becoming increasingly important in the recovery and care of elderly and disabled parents,” Mark Mortensen, Salus’ chief executive, said in a press release.
Salus has locations in Colorado and Utah, in addition to California.
