Pfizer Inc. has agreed to pay hundreds of millions of dollars to settle a shareholder class action lawsuit concerning its arthritis drug Celebrex.
In 2002, Pfizer acquired Pharmacia Corp., the maker of Celebrex. A year later, investors sued Pfizer and some former Pharmacia officers for allegedly violating federal securities laws. The plaintiffs claimed that from 2000 to 2001, the defendants misrepresented the clinical trial results of Celebrex in order to make it appear safer than similar drugs.
A district judge certified the class in 2007 but later granted Pfizer’s motion to dismiss the case. The 3rd Circuit reinstated the case in 2009, and the Supreme Court denied Pfizer’s cert petition in 2010. Pfizer then tried to get the case dismissed earlier this year, but the district judge denied the motion and scheduled a trial for Oct. 22.
On Friday, Pfizer agreed to pay $164 million to settle the suit. However, it continues to deny any wrongdoing.
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