Pfizer Inc. agreed to pay $67.5 million to settle a class-action lawsuit led by the Pipefitters Union Local 537 Pension Fund, Boston, according to a 10-Q filed with the SEC on Nov. 9.
The lawsuit originally was filed in 2007 in the U.S. District Court in New York against Wyeth, which was purchased by Pfizer in 2009.
The complaint alleged Wyeth violated federal securities laws by misrepresenting the safety of the drug Pristiq during the period before the FDA's issuance in July 2007 of an “approvable letter” for Pristiq for the treatment of vasomotor symptoms.
In September, the court certified a class-action suit for those that purchased Wyeth stock from June 26, 2006, to July 24, 2007.
“Wyeth reached an agreement to resolve a securities class action, City of Livonia Employees' Retirement System v. Wyeth, et al., pending in New York federal court. Under the terms of the agreement, which is subject to court approval, the company has agreed to pay $67.5 million and defendants deny any wrongdoing,” said Steven Danehy, Pfizer spokesman, in an e-mailed statement.
Leo Fahey, business manager for the union, did not immediately return a telephone call by press time. The union pension fund had $404 million in assets as of Feb. 28, 2011, according to the most recent Form 5500 filing.