Hayden v. Portola Pharmaceuticals, Inc. et al.

The Company agreed to pay $17.5 million to settle a securities class action lawsuit to avoid further litigation.

The Complaint alleged that the Company and its Leaders made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects, specifically:

• Portola’s internal control over financial reporting regarding reserve for product returns was not effective;

• Portola was shipping longer-dated products with a 36-month shelf life;

• Portola had not established an adequate reserve for returns of prior shipments of the short-dated product;

• Portola was reasonably likely to need to “catch up” on accounting for return reserves.