Did you lose money on investments in Amgen Inc.? If so, please visit Amgen Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com to discuss your rights.
NEW YORK, March 15, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Amgen Inc. (“Amgen” or the “Company”) (NASDAQ: AMGN) between July 29, 2020 and April 27, 2022, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1934.
Amgen is one of the largest independent biopharmaceutical companies in the world. The Company boasts a large and varied patented drug portfolio, with numerous additional drug candidates under development. Amgen maintains an internal manufacturing network to supply its commercial production capabilities for bulk drug manufacturing, formulation, fill, finish, tableting, and device assembly. These activities are performed within the United States and its territories in the Company’s Puerto Rico, Rhode Island, and California facilities, as well as internationally in the Company’s Ireland, Netherlands, and Singapore facilities. In addition, Amgen uses third-party contract manufacturers to supplement the capacity or capability of its commercial manufacturing network.
Plaintiff alleges that Defendants made materially false and misleading statements throughout the Class Period. Specifically, Plaintiff alleges that Defendants failed to disclose that: (a) the U.S. government claimed Amgen owed more than $3 billion in back taxes for tax years 2010, 2011, and 2012; (b) the U.S. government claimed Amgen owed more than $5 billion in back taxes for tax years 2013, 2014, and 2015; (c) the U.S. government would likely claim Amgen owed materially more than investors had been led to believe for subsequent tax years for which the Company had used the same profit allocation treatment between its U.S. and Puerto Rico operations; (d) Amgen had not taken sufficient accruals to account for its outstanding tax liabilities; (e) Amgen had failed to comply with ASC 450 and other rules and regulations regarding the preparation of its periodic SEC filings; and (f) Amgen’s refusal to pay taxes claimed by the U.S. government exposed the Company to a substantial risk of severe financial penalties imposed by the IRS.
On August 3, 2021, Amgen issued an earnings release for its second fiscal quarter of 2021, which, for the first time, disclosed the massive outstanding tax liabilities sought by the IRS. The release stated that Amgen had received a Notice of Deficiency from the IRS in July 2021 which sought $3.6 billion in back taxes, plus interest, for tax years 2010, 2011, and 2012. This amount was substantially higher than investors had been led to believe by defendants. The release also stated that Amgen had filed a petition in the U.S. Tax Court to contest the Notice of Deficiency.
In response to this news, the price of Amgen common stock closed down $15.77 per share, or 6.5%, on August 4, 2021.
Then, on April 27, 2022, Amgen issued an earnings release for its first fiscal quarter of 2022, which disclosed that the Company had received a Notice of Deficiency from the IRS in April 2022 which sought $5.1 billion in back taxes, plus interest, for tax years 2013, 2014, and 2015, and proposed a $2 billion penalty as a result of Amgen’s improper tax avoidance strategies. Thus, the collective amount that the IRS claimed was owed by the Company to the U.S. government totaled more than $10 billion – far higher than investors had been led to believe – with likely additional exorbitant back taxes owed for subsequent tax years for which Amgen had applied the same profit allocation treatment between its U.S. and Puerto Rico operations. The release also stated that Amgen intended to file a petition in the U.S. Tax Court to contest the Notice of Deficiency, which it would seek to consolidate with its pending petition for earlier tax years.
Om this news, the price of Amgen common stock closed down $10.66 per share, or 4.3%, on April 28, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than May 12, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Amgen common stock, and/or would like to discuss your legal rights and options please visit Amgen Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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Contact Information:
Peter Allocco
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
