Pfizer

Pfizer has agreed to pay around $400m charge for an agreement in principle to resolve a securities class action pending against the company over off-label promotion actions.

The decision was disclosed as the company released its fourth-quarter results.

The agreement is subject to New York federal court approval and has been revealed ahead of a jury trial set for 10 February, reported Reuters.

"This resolution reflects a desire by the company to avoid the distraction of continued litigation and focus on the needs of patients and physicians."

Pfizer spokeswoman Christine Regan Lindenbloom was quoted by Reuters as saying: "This resolution reflects a desire by the company to avoid the distraction of continued litigation and focus on the needs of patients and physicians."

In 2010, a lawsuit was filed against the company and various executives for giving false statements to shareholders regarding its off-label marketing of products such as Bextra.

In addition, the US drugmaker was charged for making misleading statements about different government investigations of those practices, which resulted in a $2.3bn settlement with the US Justice Department in 2009.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

A Pfizer spokeswoman said that the firm continues to deny wrongdoing and that the disclosures to investors ‘were appropriate and prepared in good faith’.

Robbins Geller Rudman & Dowd lawyer for the investors Michael Dowd declined to comment on the trial.


Image: Pfizer world headquarters: Photo: courtesy of Jim.henderson.