New Jersey District Court Grants Dismissal with Prejudice of Securities Class Action Against Bausch Health
On November 20, 2025, Simpson Thacher secured a significant win for Bausch Health Cos. Inc. in the U.S. District Court for the District of New Jersey when U.S. District Judge Zahid N. Quraishi granted a motion to dismiss a proposed class action accusing the pharmaceutical company of misleading shareholders about the Company's financial stability, including with respect to a proposed spinoff of its subsidiary Bausch + Lomb, ongoing securities litigation, and with respect to the strength of its Xifaxan® patents. Judge Zahid N. Quraishi dismissed the case in its entirety with prejudice.
In dismissing the case with prejudice, Judge Quraishi’s ruling agreed with the firm’s arguments that the alleged misstatements were either not misleading or inactionable forward-looking statements or statements of opinion. The Court also found that plaintiffs failed to sufficiently allege a scheme liability claim and agreed that Bausch Health was not obligated to disclose unproven damages alleged by plaintiffs in a separate litigation.
The Simpson Thacher team included Craig Waldman, Jonathan Youngwood, Meredith Karp, Jonathan Kaplan, and Noah Huffman.