Economics

Allergan Directors Are Sued Over Marketing of Botox

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Allergan Inc. directors should be held liable for opening up the maker of wrinkle smoother Botox to criminal sanctions and a $600 million settlement by allowing the drug to be marketed for unapproved uses, investors said in a lawsuit.

Allergan’s board approved so-called off-label marketing plans for Botox as part of the company’s strategic plans and ignored repeated violations of federal law governing the sales and marketing of drugs, a Louisiana pension fund said in its Delaware Chancery Court lawsuit. The suit seeks to force directors to return money to the company to offset the settlement payout.