As noted in The Am Law Litigation Daily, on September 10, Judge Michael Shipp for the District of New Jersey granted two motions to dismiss on behalf of Valeant Pharmaceuticals International, Inc. (n/k/a Bausch Health Companies Inc.) in Northwestern Mutual Life Insurance Co., et al. v. Valeant Pharmaceuticals International Inc., et al., Case No. 3:18-cv-15286 and Bahaa Aly et al. v. Valeant Pharmaceuticals International Inc., et al., No. 3:18-cv-17393. Plaintiffs in both cases are investors who purchased Valeant securities and brought claims for violations of the federal securities laws against Valeant. The Court dismissed Plaintiffs’ Section 10(b) and Section 18 claims on statute of limitations grounds, finding that Plaintiffs’ claims are untimely and cannot benefit from the tolling doctrine because doing so would not further the purposes of the doctrine which are “efficiency and economy of litigation.” The Court dismissed Plaintiffs’ Section 20(a) claims since liability under that Section is predicated upon an independent violation of the Exchange Act. In Northwestern v. Valeant, the Court separately held that Plaintiffs’ state laws claims for racketeering in violation of New Jersey’s statute, common law fraud, and negligent misrepresentation are preempted under SLUSA.
To read The Am Law Litigation Daily article, please click here.
The Simpson Thacher team for the Valeant securities litigation is Paul C. Curnin, Craig S. Waldman, Daniel J. Stujenske, Kavitha Sivashanker, Dean McGee, Julia Heald, Kerry Fulham, Jonathan Kaplan, Adam Saltzman, Kathryn Chang, Jacob Lundqvist and Andrew Garber.