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Government drops Forest Labs probe

Billionaire financier Carl Icahn, right, and his wife,

Photo credit: AP, 2007

BOSTON — The U.S. government has dropped an investigation of Forest Laboratories Inc.’s chief executive that could have barred it from federal health-care programs, removing a key issue in a proxy battle waged by activist investor Carl Icahn.

The decision came Friday just hours after Icahn, who seeks to place four candidates on Forest’s board, questioned corporate governance...

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