King Pharmaceuticals, Inc. (NYSE: KG) has announced the preliminary settlement of the securities class action pending against the company in the E.D. of Tenn. The case was originally filed in 2003 and alleges securities violations in connection with the Company’s underpayment of rebates owed to Medicaid and other governmental pricing programs.
The settlement is for $38 million. Long-time readers of The 10b-5 Daily may remember the King Pharmaceuticals case as the source for one of the more amusing descriptions of the lead plaintiff selection process ever put forward by a court.