Herbalife (NYSE:HLF) has settled an 18-month-old class-action suit accusing the company of operating a pyramid scheme. Financial terms are undisclosed; Herbalife says the settlement doesn't feature "an admission of liability or wrongdoing."
Former distributor Dana Bostick originally filed the suit, alleging his efforts were "doomed from the start by an Herbalife marketing plan that systematically rewards recruiting over retail sales."
Last year, Herbalife amended its distributor agreements to preclude distributors from filing jury and class-action suits.
AbbVie (ABBV +3.7%) surges to a new 52-week high after posting better than expected results in its first earnings report since its mega-merger with Shire fell apart.
ABBV also raised its EPS outlook for the year to $3.25-$3.27, up from its prior view for $3.06-$3.16, not including any potential sales from its hepatitis C virus treatment, which is expected to receive approval from U.S. regulators before year's end.
While declining to provide details of its marketing and pricing strategy for the treatment, ABBV execs said in today's earnings conference call that the hepatitis C market is bigger and more attractive than it had thought, and expressed confidence the treatment would be able to compete with Gilead's (GILD -2.2%) Sovaldi.
Global sales of Humira, the world's top-selling drug, jumped 18% Y/Y to $3.26B; in the U.S., sales surged 25% to $1.74B; the arthritis drug accounted for 65% of total company sales.
Aegerion Pharmaceuticals (AEGR -41.1%) plummets to 52-week lows after reporting a wider than expected Q3 loss and issuing downside guidance for FY 2014.
AEGR now sees 2014 revenues of $150M-$160M from its prior range of $180M-$200M and below $172M analyst consensus estimate, after Q3 sales of its flagship Juxtapid drug fell $5M short of expectations at $44M.
Shares are downgraded by at least five firms, including BofA Merrill, which cut its rating all the way down to Underperform from Buy.