In re Dura Pharmaceuticals, Inc. Securities Litigation

The information below is only a short summary. For additional information, click here to download a copy of the Notice of Pendency and Proposed Settlement of Class Action (the “Notice”) or call the In re Dura Pharmaceuticals, Inc. Securities Litigation Settlement Helpline at 866-905-8124 to request a copy of the Notice by mail.

If you purchased or acquired Dura Pharmaceuticals, Inc. (“Dura”) common stock, Dura 3.5% Convertible Notes issued pursuant to the July 25, 1997 public offering due July 15, 2002 (“Convertible Notes”), or call or put options (collectively “Dura Securities”) between April 15, 1997 and February 24, 1998, inclusive (the “Settlement Class Period”), and are not otherwise excluded, you could receive a payment from the proposed settlement of a securities class action.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
SUBMIT A CLAIM FORM	The only way to get a payment. Click here to download a copy of the Proof of Claim.
EXCLUDE YOURSELF	Get no payment. This is the only option that allows you to ever be part of any other lawsuit about the legal claims in this case. See Question 13 In the Notice for details on how to exclude yourself from the Class.
OBJECT	Write to the Court about why you do not like the Settlement, the Plan of Allocation, or counsel’s request for attorneys’ fees and expenses. See Question 18 in the Notice for requriements of filing a written objection.
GO TO A HEARING	Ask to speak in Court concerning the fairness of the settlement. See Questions 18 and 22 in the Notice for requirements of filing a written objection and Notice of Intention to Appear.
DO NOTHING	Get no payment. Give up rights.

These rights and options – and the deadlines to exercise them – are explained in the Notice.
The Court in charge of this case still has to decide whether to approve the settlement. Payments will be made if the Court approves the settlement and after potential appeals are resolved.

SUMMARY NOTICE

Securities and Time Period:

The Settlement relates to Dura Securities. In order to be considered part of the Settlement Class, you must have purchased or acquired Dura Securities during the Settlement Class Period, and not be otherwise excluded. On December 31, 2001, Dura was merged into and with Elan Pharmaceuticals, Inc., a wholly-owned U.S. subsidiary of Elan Corporation, plc. (“Elan”).

Settlement Fund and Lead Plaintiffs’ Statement of Recovery:

The settlement fund consists of fourteen million dollars ($14,000,000) plus interest earned. Your recovery will depend on the number of Dura Securities you purchased or acquired, and the timing of those transactions. It will also depend on the number of valid claim forms that members of the Settlement Class submit and the amount of such claims. Assuming that all of the investors who purchased or acquired Dura Securities during the Settlement Class Period and suffered damages participate in this settlement, Lead Counsel estimates that the estimated average distribution will be approximately: $0.63 per share of Dura common stock; and $7.79 per Convertible Note before the deduction of court-approved fees and expenses and the cost of notice and claims administration. Historically, less than all eligible investors submit claims, resulting in higher average distributions per share.

Defendants disagree with Lead Plaintiffs on the potential liability of Defendants and on the average amount of damages per share, if any, that would be recoverable if the Lead Plaintiffs were to prevail on each claim alleged. The Defendants deny that they are liable in any respect or that Lead Plaintiffs suffered any injury. The issues on which the parties disagree include, but are not limited to: (1) whether the statements made or facts allegedly omitted were material, false, misleading, or whether the Defendants are otherwise liable under the securities laws for those statements or omissions; (2) the appropriate economic model for determining the amount by which the prices of Dura Securities were allegedly artificially inflated (if at all) during the Settlement Class Period; (3) the amount by which the prices of Dura Securities were allegedly artificially inflated (if at all) during the Settlement Class Period; (4) the effect of various market forces influencing the trading prices of Dura Securities at various times during the Settlement Class Period; (5) the extent to which external factors, such as general market and industry conditions, influenced the trading prices of Dura Securities at various times during the Settlement Class Period; (6) the extent to which the various matters that Lead Plaintiffs alleged were materially false or misleading influenced (if at all) the trading prices of Dura Securities at various times during the Settlement Class Period; (7) the extent to which the various allegedly adverse material facts that Lead Plaintiffs alleged were omitted influenced (if at all) the trading prices of Dura Securities at various times during the Settlement Class Period.

Fees and Expenses:

At the Settlement Hearing, Coughlin Stoia Geller Rudman & Robbins LLP, Bernstein Litowitz Berger & Grossmann LLP, and Cohen Milstein Sellers & Toll PLLC (“Lead Counsel”) will request the Court award attorneys’ fees of 25% of the Settlement Fund, plus payment of expenses not to exceed $1.25 million, which were incurred in connection with the Litigation, plus interest thereon. If the amounts requested are awarded by the Court, the average cost per share of Dura common stock will be $0.22 and the average cost per Convertible Note will be $1.65. This compensation will be paid from the Settlement Fund. Settlement Class Members are not personally liable for any such fees or expenses. To date, Lead Counsel have not received any payment for their services in conducting the Litigation nor have counsel been paid for their expenses incurred.

Deadlines:

The following is a list of deadlines by which you must take any action you wish to take with respect to the settlement:

SUBMIT CLAIM:	NOVEMBER 12, 2009
REQUEST EXCLUSION	NOVEMBER 3, 2009
FILE OBJECTION:	NOVEMBER 3, 2009
COURT HEARING ON FAIRNESS OF SETTLEMENT:	DECEMBER 3, 2009

More Information:

Further information regarding the Litigation and the Notice may be obtained by contacting the Claims Administrator In re Dura Pharmaceuticals, Inc. Securities Litigation, Claims Administrator, c/o A.B. Data, Ltd., PO Box 170500, Milwaukee, WI 53217-8042, or call 866-905-8124 toll free. You may also contact Lead Counsel Rick Nelson, Shareholder Relations, Coughlin Stoia Geller Rudman & Robbins LLP, 655 West Broadway, Suite 1900, San Diego, CA 92101, 800-449-4900; David R. Stickney, Bernstein Litowitz Berger & Grossmann LLP, 12481 High Bluff Drive, Suite 300, San Diego, CA 92130, 858-793-0070; or Daniel S. Sommers, Cohen Milstein Sellers & Toll PLLC, 1100 New York Avenue, N.W., West Tower, Suite 500, Washington, DC 20005-3964, 202-408-4600.

Additional documents regarding the case are also available for download on this site by clicking here.

If you have questions, you may call the In re Dura Pharmaceuticals, Inc. Securities Litigation Settlement Helpline at 866-905-8214 or send an email to info@durasecuritieslitigation.com.