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Allergan Inc. (AGN) disclosed Tuesday that a shareholder lawsuit has been filed in connection with its $600 million criminal and civil settlement with the U.S. government over Botox sales and marketing.
The dispute with the government involved alleged marketing of the antiwrinkle treatment--best known for its use in cosmetic procedures--for uses not approved by the Food and Drug Administration. The company expects to record third-quarter pretax charges of $610 million to $615 million in connection with the settlement.
Botox accounts for about a third of Allergan's revenue and in the latest quarter saw sales grow 7% to $360.5 million.
The lawsuit, filed Friday in Delaware state court, alleges breaches of fiduciary duties and seeks to shift settlement costs to the board. The company is "investigating the action and expects to contest it vigorously," according to a regulatory filing.
Allergan's shares closed Friday at $63.87 and were inactive premarket.