Elan Corporation plc (ADS) (NYSE: ELN) Investor Securities Class Action Lawsuit 02/04/2002

If you purchased American Depositary Shares (ADS) of Elan Corporation plc (NYSE: ELN), you might have certain options and should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Elan Corporation
Case Name: 
Elan Corporation Shareholder Class Action Lawsuit 02/04/2002
Case Status: 
Settlement Approved
Affected Securities
NYSE: ELN
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/04/2002
Class Period Begin: 
02/07/2000
Class Period End: 
07/01/2002
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
05/06/2002
Date Settled: 
04/21/2005
Settlement Amount: 
$7,500,000
Deadline to Participate in Settlement: 
03/15/2005
Summary: 

January 30, 2008 - The court ordered the authorization of the distribution of the remaining net settlement funds.

April 6, 2006 - The court ordered the authorization of the distribution of the net settlement fund, in part.

April 21, 2005 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

November 1, 2004 - The court preliminarily approved the settlement.

October 21, 2004 - Parties filed a stipulation of settlement.

September 21, 2004 - The court denied the defendant's motion to dismiss as moot.

March 25, 2003 - A defendant filed a motion to dismiss.

January 24, 2003 - The lead plaintiffs filed a consolidated complaint.

December 3, 2002 - The lead plaintiffs and lead counsel were appointed.

August 7, 2002 - All cases were consolidated.

April 5, 2002 - Lead plaintiff motions were filed.

February 5, 2002 - An additional investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased American Depositary Shares (ADS) of Elan Corporation plc (NYSE: ELN) between January 2, 2001 and January 29, 2002.

February 4, 2002 - Another investor filed a complaint in the U.S. District Court for the Southern District of California on behalf of investors who purchased American Depositary Shares (ADS) of Elan Corporation plc (NYSE: ELN) between April 23, 2001 and January 29, 2002.

February 4, 2002 - An investor in American Depositary Shares (ADS) of Elan Corporation plc (NYSE: ELN) filed a lawsuit in the U.S. District Court for the Southern District of New York against Elan Corporation plc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between December 21, 2000 and February 1, 2002.

Specifically, the complaint alleges that between December 21, 2000 and February 1, 2002., Elan Corporation plc issued to the investing public false and misleading financial statements and press releases concerning Elan Corporation plc's publicly reported revenues and earnings. Moreover,Elan Corporation plc omitted to state material information necessary in order to make prior statements not misleading. The complaint additionally alleges that Elan Corporation plc engaged in improper accounting practices that artificially inflated Elan Corporation plc's reported revenues; artificially increasing the asset side of its balance sheet; and improperly reduced its reported expenses.

On January 30, 2002, the Wall Street Journal first reported on some of Elan Corporation plc's accounting practices and on February 4, 2002, Elan Corporation plc issued a press release providing information about two "qualified special purpose entities," or QSPEs, which it said were not consolidated in its final results as presented under U.S. accounting principles. It is said that the value of the investment of the two QSPEs was "insufficient to pay the indebtedness of the entities." In response to these revelations, the market price of Elan Corporation plc stock (NYSE: ELN) dropped precipitously from a high of $65 to below $15 on February 4, 2002.