MRK - Allergan's Near Billion-Dollar Charge And Other News: The Good Bad And Ugly Of Biopharma

$750 million charge in Allergan’s 3Q 2019 earnings

Allergan plc’s (AGN) 3Q-2019 earnings will have a $750 million pre-tax GAAP charge. According to the company’s announcement on 10/28/2019, its subsidiaries, Forest Laboratories, LLC, Forest Laboratories, Inc. and Forest Laboratories Holdings Ltd. (collectively termed "Forest") will pay a total of $750 million, subject to finalization of the settlement agreements and court approval, to the direct purchasers of Namenda and Namenda XR, oral medications used to treat moderate to severe dementia related to Alzheimer’s Disease.

The class-action lawsuit in the U.S. District Court for the