The US Court of Appeals for the Third Circuit has ruled that Sculptor Asset Management cannot pursue its own securities lawsuit against healthcare products provider Perrigo after missing the deadline to opt out of a $97m shareholder class action settlement.
The panel said Sculptor – which held about 5% of Perrigo’s shares during the relevant period – had the opportunity to opt out early in the litigation but failed to do so. The firm argued its intent to sue separately was clear from court records, and that any lapse should be deemed “excusable neglect”. Judges however, rejected the claim, holding that Sculptor “bears the burden of its former counsel’s mistakes.”
The class action resolved allegations that Perrigo misled investors between 2015 and 2017 in connection with a failed $26bn takeover bid by Mylan. Perrigo has denied any wrongdoing.
