Avanir Pharmaceuticals defeats motion for preliminary injunction seeking to enjoin shareholder vote
Client(s) Avanir Pharmaceuticals, Inc.
Jones Day represented Avanir Pharmaceuticals, Inc. in a motion for preliminary injunction that sought to enjoin a shareholder vote on Avanir's proposed equity compensation plan. The plaintiff claimed that Avanir's proxy statement failed to disclose, and misstated, material information about the proposed 2014 equity compensation plan to be voted on by shareholders at the annual meeting.
Following expedited discovery, briefing, and oral argument, on February 10, 2014, the district court (Hon. Cormac J. Carney) denied plaintiff's motion, finding that plaintiff had failed to demonstrate a likelihood of success on the merits and irreparable harm, and that the balance of equities and the public interest weighed in defendants' favor. In denying plaintiff's motion, Judge Carney also found that Avanir's disclosures with respect to the stock incentive plan were detailed, understandable, and complied with all legal requirements.
Masters v. Avanir Pharmaceuticals, Inc., et al., Case No. 8:14-cv-00053-CJC-RNB (C.D. Cal.)