Willa Rosenbloom v. David Pyott

OPINION

REINHARDT, Circuit Judge:

Allergan, a specialty pharmaceutical manufacturer, produces Botox, a well-known cosmetic and therapeutic drug. In 2010, faced with allegations that it had acted illegally in marketing and labeling Botox, Allergan settled several qui tom suits and pled guilty in a criminal ease. Allergan ultimately paid a total of $600 million in part for civil settlements and in part as a criminal fíne. Shortly afterward, Plaintiffs, all Allergan shareholders, filed a derivative action alleging that Allergan’s directors are liable for violations of various state and federal…