Shareholder Suit Filed Against Allergan: A derivative...
From Times Staff and Wire Reports
Shareholder Suit Filed Against Allergan: A derivative shareholder’s lawsuit was filed by Peter Stuyvesant Lt. and Joanne Gollomp against the officers and directors of Allergan Inc. of Irvine, alleging that they inflated the company’s securities. The Superior Court suit alleges Allergan scaled back its anticipated growth of “mid-teen sales” in July, 1989, to “double-digit range” a month later. As a result, Allergan’s stock dropped $3.75 to $20.75, the suit said. It said the company failed to disclose that its financial future depended on the timely introduction of a new product, a retinal analyzer, and on a strong rate of new contact lens wearers.
