Elan will show a $55 million charge in its interim results for estimated liabilities relating to legal cases against it, the company said today.
"The interim results will include a reserve for the company's estimate of the liabilities related to the previously disclosed shareholder class action lawsuit and the ongoing Securities & Exchange Commission (SEC) investigation," Elan said.
"The reserve, which is expected to amount to $55 million, net of related insurance coverage, will be reflected as a charge in the company's income statement for the six months ended 30th June 2004," it added.
Elan had said previously it expected to wrap up an investigation by US market regulators, the SEC, into its accounting methods by the end of September.
Today, it said it hoped the investigation would be resolved "as soon as practicable."
Analysts had expected the investigation to cost the firm between $50 million and $100 million.