Pfizer Officials Sued by Investors

A union pension fund has sued drugmaker Pfizer, saying that directors should be held liable for the company’s repeated violations of federal laws governing drug-marketing practices that resulted in the company having to pay a $2.3 billion settlement.

Pfizer’s board turned a blind eye to criminal guilty pleas the company entered over marketing practices for medicines such as Bextra and Neurontin.  The fund’s lawyers argue that the directors’ inaction has hurt the value of investors’ stakes in the company.

According to Bloomberg:

“The $2.3 billion settlement to resolve government probes into Pfizer’s marketing practices was the largest accord in history to address such sales techniques. Proceeds from the accord went to government health agencies including Medicare, Medicaid and the military’s Tricare health plan.”

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