Amgen Inc. (AMGN) Failed to Disclose the Impact of the Company’s Tax Liability to Investors
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Amgen Inc. (NASDAQ: AMGN) common stock between July 29, 2020 and April 27, 2022, for violations of the Securities Exchange Act of 1934. Amgen is one of the world’s largest independent biopharmaceutical companies.
According to the complaint, for years, Amgen has been accused of improperly skirting U.S. tax laws and relying on a profit allocation system that ran afoul of the U.S tax code, with the implication of owing billions in back taxes.
By the start of the class period, and after years of Amgen’s failed attempts to avoid receiving notices of deficiency, which would ultimately put the Company on the hook for over $10 billion in taxes and penalties, defendants were compelled to make substantial disclosures regarding the Company’s outstanding tax liabilities to investors. Rather than disclose these adverse facts, however, defendants failed to take any meaningful accrual or otherwise reveal the staggering amount of back taxes and penalties claimed by the U.S. government. These material omissions caused the price of Amgen stock to trade at artificially inflated prices throughout the class period, ultimately causing investors to suffer hundreds of millions of dollars in losses when Amgen belatedly revealed the truth.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Amgen. Shareholders who want to act as lead plaintiff for the class must file their papers by May 12, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.