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Royalty Issues Another Statement Related to Elan Suit

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Royalty Pharma announced today that Elan voluntarily (NYSE: ELN) withdrew the lawsuit it had filed on an expedited basis only one week ago in New York federal court.   That suit claimed that Royal Pharma's tender offer disclosures were inadequate.  As explained in Royalty Pharma's response to Elan's complaint, served on Elan just yesterday, Elan's claims were entirely without merit, and in any event were rendered irrelevant by the amended disclosures Royalty Pharma filed Friday, June 7.  Faced with the prospect of an embarrassing loss, Elan has chosen to walk away.  The voluntary withdrawal confirms that Royalty Pharma's disclosures have been full and accurate, and that investors have all the information they require to consider Royalty Pharma's highly compelling tender offer.

By voluntarily dismissing its claim today, Elan also avoids having to defend in open court its conduct with respect to the ADS record date.  Indeed, it was less than two hours after Royalty Pharma served discovery requests seeking to learn more information regarding Elan's board and senior management actions around the record date that Elan promptly dismissed its lawsuit.  Elan had also refused to allow Royalty Pharma to file publicly any of the emails or other documents it obtained from Elan in connection with its defense of Elan's lawsuit, or even to file Royalty Pharma's brief without redacting information from Elan's internal emails about the ADS record date.

Elan now claims the ADS record date has always been May 23, despite documentary proof that on May 22 and May 23, Elan's investor relations department told numerous investors the record date would be June 13.  Royalty Pharma believes that many investors have been deprived of their right to vote at the June 17 extraordinary general meeting as a result of Elan's actions relating to the record date.   

Posted-In: News Legal


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