Amgen settles shareholder lawsuit claiming it hid $10.7 billion tax bill

Biopharmaceutical giant Amgen Inc. has settled a class-action shareholder lawsuit alleging that it concealed a potential $10.7 billion tax bill from investors, with the settlement amounting to $74 million. The dispute centers on accusations that Amgen delayed disclosing a massive Internal Revenue Service (IRS) claim for underreported taxes between 2010 and 2015, primarily related to transfer pricing practices involving a Puerto Rico subsidiary. The IRS sought approximately $8.7 billion in back taxes plus interest and $2 billion in penalties.

Shareholders, led by the Asbestos Workers Philadelphia Pension Fund, claimed that the company’s delayed disclosure caused its stock to trade at artificially high levels, with share prices dropping significantly after the tax risks were revealed in 2021 and 2022. A federal judge rejected Amgen’s attempt to dismiss the lawsuit in September 2024, allowing the case to proceed before the parties reached this settlement. The settlement remains subject to court approval and covers Amgen shareholders who held the stock between July 29, 2020, and April 27, 2022.