CSL Limited Settles Antitrust Class Action
Agreement to settle U.S. antitrust class action litigation
Profit outlook re-affirmed, subject to settlement
Melbourne, Australia — 07/10/2013
CSL Limited (ASX:CSL) today announced that it has signed an agreement to settle the U.S. antitrust class action litigation, filed by certain U.S. and Puerto Rican hospital groups, which has been ongoing since 2009. The settlement agreement resolves and dismisses all claims and potential claims of class members against CSL in the lawsuit, as well as those against the Plasma Protein Therapeutics Association, an industry trade association.
The settlement, including payment of US$64m, is subject to an approval process by the U.S. federal court. This process is expected to take several months during which time CSL’s involvement in the litigation will be on hold.
Commenting on the settlement, CSL’s Chief Executive Officer and Managing Director Paul Perreault said, “While we continue to strongly reject any allegation of wrong doing, we have negotiated a settlement of the litigation which we believe is in the best interests of the Company and our shareholders. To pursue the case further would have required several more years of management time and focus as well as substantial additional legal costs with no absolute certainty of the outcome.”
Profit outlook1 (at 2012/2013 exchange rates2)
The Company continues to anticipate net profit after tax (NPAT) growth in line with the guidance provided at the Company’s full year result announced on 14 August 2013, subject to today’s announcement regarding the settlement of the U.S. antitrust litigation.
If approved, the settlement represents a one-off charge reducing NPAT expectations for fiscal 2014 by US$39m. This charge takes anticipated NPAT growth for the current financial year to approximately 7%, at 2012/2013 exchange rates2.
CSL will today, at 2pm (Australian Eastern Standard Time), hold a conference call to provide additional background to today’s announcement and answer any questions that may arise.
Dial in details -
Australia: 1800 059 809
International: +61 7 3145 4003
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For further information, please contact:
Head of Investor Relations
Phone: +613 9389 2818
Senior Director Public Affairs
Phone: +613 9389 1506
Mobile: +614 0997 8314
Hintons & Associates
Phone: +613 9600 1979
Mobile: +614 0844 1122
1 In compiling the Company’s financial forecasts for the year ending 30 June 2014 a number of key variables which may have a significant impact on guidance have been identified. These include material price and volume movements in plasma products, competitor activity, changes in healthcare regulations and reimbursement policies, royalties arising from the sale of Human Papillomavirus Vaccine, internationalisation of the Company’s influenza vaccine sales and plasma therapy life cycle management strategies, enforcement of key intellectual property, regulatory risk, litigation, the effective tax rate and foreign exchange movements.
2 Using 2012/2013 exchange rates removes the impact of exchange rate movements to facilitate comparability. See Company 2012/2013 results announcement for further detail.
Posted: October 2013