O’Melveny won a major victory for Actavis PLC (formerly Watson Pharmaceuticals), when the Third Circuit affirmed the dismissal of a securities class action against its client and co-defendant Columbia Laboratories Inc. The putative class action was launched by certain shareholders of Columbia who alleged that executives at Watson and Columbia violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by issuing materially false and misleading statements regarding the safety and efficacy of PROCHIEVE, Columbia’s drug to prevent premature birth. In January 2012, Columbia’s share value plummeted after the Food and Drug Administration (FDA) voted 13 to 4 against recommending approval the drug. The Third Circuit’s ruling upheld the conclusion reached by U.S. District Judge Faith Hochberg when she granted Columbia’s and Watson’s motions to dismiss for the second time.