Amgen 2007 Annual Report Download - page 169

AMGEN INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Federal Securities Litigation — In re Amgen Inc. Securities Litigation
The six federal class action shareholder complaints filed against Amgen Inc., Kevin W. Sharer, Richard D.
Nanula, Dennis M. Fenton, Roger M. Perlmutter, Brian M. McNamee, George J. Morrow, Edward V. Fritzky,
Gilbert S. Omenn and Franklin P. Johnson, Jr., (the “Federal Defendants”) in the United States District Court for
the Central District of California (the “California Central District Court”) on April 17, 2007 (Kairalla v. Amgen
Inc., et al.), May 1, 2007 (Mendall v. Amgen Inc., et al. & Jaffe v. Amgen Inc., et al.), May 11, 2007 (Eldon v.
Amgen Inc., et al.), May 21, 2007 (Rosenfield v. Amgen Inc., et al.) and June 18, 2007 (Public Employees’ Re-
tirement Association of Colorado v. Amgen Inc., et al.) were consolidated by the California Central District
Court into one action captioned In re Amgen Inc. Securities Litigation. The consolidated complaint was filed with
the California Central District Court on October 2, 2007. The consolidated complaint alleges that Amgen and
these officers and directors made false statements that resulted in: (i) deceiving the investing public regarding
Amgen’s prospects and business; (ii) artificially inflating the prices of Amgen’s publicly traded securities and
(iii) causing plaintiff and other members of the Class to purchase Amgen publicly traded securities at inflated
prices. The complaint also makes off-label marketing allegations that, throughout the class period, the Federal
Defendants improperly marketed Aranesp®and EPOGEN®for off-label uses while aware that there were alleged
safety signals with these products. The plaintiffs seek class certification, compensatory damages, legal fees and
other relief deemed proper. The Federal Defendants filed a motion to dismiss on November 8, 2007. On Febru-
ary 4, 2008, the California Central District Court granted in part and denied in part the Federal Defendants’
motion to dismiss the consolidated amended complaint. Specifically, the California Central District Court grant-
ed the Federal Defendants’ motion to dismiss as to individual defendants Fritzky, Omenn, Johnson, Fenton and
McNamee, but denied the Federal Defendants’ motion to dismiss as to individual defendants Sharer, Nanula,
Perlmutter and Morrow. The California Central District Court granted plaintiffs leave to amend the complaint.
State Derivative Litigation — Larson v. Sharer et al
The three state shareholder derivative complaints filed against Amgen Inc., Kevin W. Sharer, George J. Mor-
row, Dennis M. Fenton, Brian M. McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C.
Pelham, Frederick W. Gluck, Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank
C. Herringer, Richard D. Nanula, Willard H. Dere, Edward V. Fritzky, Franklin P. Johnson, Jr. and Donald B.
Rice as defendants (the “State Defendants”) on May 1, 2007 (Larson v. Sharer, et al. & Anderson v. Sharer, et
al.), and August 13, 2007 (Weil v. Sharer, et al.) in the Superior Court of the State of California, Ventura County
(the “Superior Court”) were consolidated by the Superior Court under one action captioned Larson v. Sharer et
al. The consolidated complaint was filed on July 5, 2007. The complaint alleges that the State Defendants
breached their fiduciary duties, wasted corporate assets, were unjustly enriched and violated the California
Corporations Code. Plaintiffs allege that the State Defendants failed to disclose and/or misrepresented results of
Aranesp®clinical studies, marketed both Aranesp®and EPOGEN®for off-label uses and that these actions or
inactions caused shareholders to suffer damages. The complaints also allege insider trading by the State Defend-
ants. The plaintiffs seek treble damages based on various causes of action, reformed corporate governance,
equitable and/or injunctive relief, restitution, disgorgement of profits, benefits and other compensation, and legal
costs. A hearing on defendants’ motion to dismiss and other motions is currently scheduled for March 13, 2008.
Federal Derivative Litigation
On May 7, 2007, the shareholder derivative lawsuit of Durgin v. Sharer, et al. was filed in the California
Central District Court and named Amgen Inc., Kevin W. Sharer, George J. Morrow, Dennis M. Fenton, Brian M.
McNamee, Roger M. Perlmutter, David Baltimore, Gilbert S. Omenn, Judith C. Pelham, Frederick W. Gluck,
Jerry D. Choate, J. Paul Reason, Frank J. Biondi, Jr., Leonard D. Schaeffer, Frank C. Herringer, Richard D.
Nanula, Edward V. Fritzky and Franklin P. Johnson, Jr. as defendants. The complaint alleges the same claims
F-43