Healthy Skepticism Library item: 15258
Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.
Publication type: news
Schering-Plough agrees to $165M legal settlement
Associated Press 2009 Mar 13
http://www.forbes.com/feeds/ap/2009/03/13/ap6166361.html
Full text:
Schering-Plough Corp. will pay $165 million to settle a securities class-action lawsuit accusing the drugmaker of not disclosing manufacturing problems several years ago.
The money will go to a settlement fund for shareholders who purchased the company’s stock between May 9, 2000 and Feb. 15, 2001, according to a plaintiffs’ attorney statement. A final hearing on the settlement will be held June 1.
Schering-Plough denies wrongdoing and says investors knew about manufacturing problems, which were disclosed in Securities and Exchange Commission filings. A statement from the company said it agreed to settle the suit to avoid “further protracted and expensive litigation.”
It said insurance and existing reserves will cover the settlement.
In 2002, the Food and Drug Administration hit Schering-Plough with a $500 million fine for manufacturing problems that had gone on for years despite warnings.
The FDA required Schering-Plough to make costly upgrades and endure scrutiny under a consent decree. It also delayed approval of Clarinex, successor to the allergy drug Claritin.
