AbbVie Inc. (ABBV) Scores Major Legal Victory as Illinois Court Shuts Down $63 Billion Allergan Shareholder Lawsuit

AbbVie Inc. (NYSE:ABBV) has achieved a significant legal victory as the Illinois Appellate Court upheld the dismissal of a shareholder class action lawsuit stemming from its $63 billion acquisition of Allergan plc in 2020.

The lawsuit, led by plaintiff Stephen Twigg on behalf of former U.S.-based Allergan shareholders, accused ABBV of improperly issuing unregistered shares during the merger.

However, the appellate panel ruled that the share issuance was properly exempt under Section 3(a)(10) of the Securities Act of 1933, citing the fairness hearing held before Ireland’s High Court as meeting all statutory requirements. The court emphasized that U.S. shareholders had the right to participate, including virtually, despite pandemic travel restrictions.

The panel also rejected claims that AbbVie Inc. (NYSE:ABBV) failed to disclose objections from two dissenting FTC commissioners, noting those comments were public and had no bearing on the fairness of the transaction.

Crucially, the court found Twigg had suffered no actual injury, as the AbbVie Inc. (NYSE:ABBV) shares he received increased in value by about $30 per share, making any reversal financially detrimental. This decision closes a major chapter of merger-related litigation and sets a precedent for future securities claims involving international fairness hearings.

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