Lawsuit: Allergan Artificially Inflated Stock Amid Price-Fixing Conspiracy

A group of investment funds sued Allergan, accusing the company of artificially inflating its stock by conspiring with other manufacturers of generic drugs.

The lawsuit cites a series of price increases — including for Allergan’s propranolol — for which there is “no non-collusive explanation” such as shortages, production issues or increases in demand. The accused co-conspirators include then-Actavis CEO Paul Bisaro and former Teva generics CEO Siggy Olafsson.

Allergan’s share price fell nearly by half since mid-2015, following the announcement of an industrywide price-fixing investigation.