Friday, Dec 7, 1990
South San Francisco, Calif. -- December 7, 1990 --Genentech, Inc. (NYSE: GNE) today reached an agreement to settle all stockholder suits brought against the company in 1988 as federal securities class actions which were consolidated under the jurisdiction of the U.S. District Court for Northern California.
Under the agreement, the claims against Genentech and the other defendants will be dismissed without any admission or presumption of any liability or wrongdoing.
The total settlement will be $29.0 million, with Genentech's insurance carrier contributing a substantial portion of that amount. Genentech previously established adequate reserves to cover its portion of the settlement and, therefore, it will have no material impact on fourth quarter earnings.
The complaint was brought against the company, certain of its officers and directors. The complaint contains allegations of violations of securities laws that purportedly artificially inflated the price of Genentech's stock during a portion of the years 1987 and 1988.
Genentech, Inc. is a leading biotechnology company focusing on the development, manufacture and marketing of pharmaceuticals produced by recombinant DNA technology.
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