Posted on Fri, Aug. 28, 2009
WILMINGTON - A federal judge in Delaware has rejected a shareholder lawsuit against Pennsylvania-based drugmaker Cephalon Inc.
The judge ruled this week that Jerald King had failed to demonstrate that Cephalon's board was aware of the wrongdoing that led to his lawsuit.
King accused CEO Frank Baldino and Cephalon directors of breaching their fiduciary duties in not properly overseeing the marketing of drugs for uses not approved by the FDA. He said the lack of oversight involving the painkiller Actiq, the anti-epilepsy drug Gabitril, and the narcolepsy drug Provigil resulted in huge losses to Cephalon.
The company pleaded guilty last year and agreed to pay $425 million to settle federal charges that it broke the law by marketing the drugs to doctors for off-label uses.
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