||United States District Court for the Southern District of New York
||The Hon. Edgardo Ramos
||July 29, 2020 and April 27, 2022
Amgen investors may receive additional information about the case by clicking the link "Submit Your Information" above. If you are a member of the class described below, you may no later than May 12, 2023 move the Court to serve as lead plaintiff of the class, if you so choose.
A class action lawsuit has been filed on behalf of those who purchased or acquired Amgen Inc. (“Amgen”) (NASDAQ: AMGN) common stock between July 29, 2020 and April 27, 2022, both dates inclusive (the “Class Period”).
Headquartered in Thousand Oaks, California, Amgen sells a vast array of biopharmaceutical products across the United States and globally. Amgen is one of the world’s largest independent biopharmaceutical companies.
On July 29, 2020, Amgen filed its quarterly 10-Q with the SEC wherein it noted the company’s ongoing tax dispute the U.S. government but assured investors that existing accruals were “appropriate” and did not disclose any meaningful accrual for tax liabilities associated with this ongoing tax dispute.
Then, on August 3, 2021, Amgen disclosed, for the first time, massive outstanding tax liabilities sought by the U.S. Internal Revenue Service (“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. Following this news, the price of Amgen common stock fell by more than 6%.
Then, on April 27, 2022, Amgen issued an earnings release for its first fiscal quarter of 2022, which disclosed that Amgen 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. In response to this news, Amgen’s stock price closed down $10.66 per share, or 4.3% on April 28, 2022. In subsequent days, the share price continued to fall, reaching a low of $227.32 per share on May 2, 2022, 8.6% below the April 27, 2022 closing price.
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the U.S. government claimed Amgen owed more than $3 billion in back taxes for tax years 2010, 2011, and 2012; (2) the U.S. government claimed Amgen owed more than $5 billion in back taxes for tax years 2013, 2014, and 2015; (3) the U.S. government would likely claim Amgen owed materially more to the U.S. government than investors had been led to believe for subsequent tax years for which Amgen had used the same profit allocation treatment between its U.S. and Puerto Rico operations; (4) Amgen had not taken sufficient accruals to account for its outstanding tax liabilities; (5) Amgen had failed to comply with ASC 450 and other rules and regulations regarding the preparation of its periodic SEC filings; and (6) Amgen’s refusal to pay taxes claimed by the U.S. government exposed Amgen to a substantial risk of severe financial penalties imposed by the IRS.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jonathan Naji, Esq. (484) 270-1453 or via e-mail at email@example.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.