Pfizer to settle investor lawsuit with US $164m payment
Pfizer has agreed to settle a shareholder class action, accusing the global drug maker of misrepresenting the clinical trial results for arthritis drug, Celebrex, with a payment of US $164 million. The settlement was confirmed by Pfizer spokesman, Christopher Loder.
This lawsuit began back in 2003, when shareholders sued Pfizer and certain former officers of Pharmacia Corporation (who manufactured Celebrex) for alleged violations of federal securities laws. The shareholders alleged that between 2000 and 2001, the defendants misrepresented the clinical trial results of Celebrex to make its safety profile appear better than rival drugs.
The case was dismissed in court in 2007, but reinstated in 2009 by the 3rd U.S. Circuit Court of Appeals. Pfizer attempted to have the case dismissed in January 2012, but U.S. District Judge Anne Thompson denied the motion and a case was set for October 22nd 2012. Pfizer’s settlement therefore comes two weeks before the agreed case date.
Celebrex is Pfizer’s fifth biggest-selling medicine, with annual sales of approximately $2.5 billion. According to Christopher Loder, Pfizer continues to deny wrongdoing.
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