Boston, MA 07/09/2014 (wallstreetpr) –
Pfizer Inc. (NYSE:PFE) got a reprieve Tuesday when a U.S. District Judge in New York dismissed an investor class action against the drug company. The ruling came ahead of the trial that was expected to begin in September.
The dismissal of the lawsuit ended several years of push and pull between the Pfizer and some of its investors that included Teachers’ Retirement System of Louisiana.
In the lawsuit, the disgruntled investors claimed that the company misled them on the safety issues around the pain-relieving drugs Bextra and Celebrex, which were subsequently removed from the U.S. market and the company forced to pay $2.3 billion to settle the probe. The safety problem concerning the drugs also led to more than $68 billion loss in the company’s market cap, according to the suit.
The lawsuit apparently perished on the failure by the plaintiffs to provide evidence on the damages.
The class action covered investors who acquired shares of Pfizer Inc. (NYSE:PFE) between October 2000 and October 2005.
Pfizer pleased with ruling
In a statement, Pfizer Inc. (NYSE:PFE) said it was pleased with the dismissal of the investor class action. The company cited that its evidence in the case always demonstrated that its statements on Bextra and Celebrex were accurate.
Safety concerns
The investors in the class action contended in their lawsuit that Pfizer Inc. (NYSE:PFE) concealed material results of the study conducted beginning 1998 concerning the safety of Bextra and Celebrex, especially with regards to cardiovascular risks.
Revenue from the drug tumbled more than $2 billion within the first nine months after the safety concerns were publicized. As if that was not enough, the market cap of Pfizer Inc. (NYSE:PFE) tumbled between October 2004 and October 2005, according to the lawsuit.
The dismissal of the case comes at a time when Pfizer Inc. (NYSE:PFE) is trying hard to keep its top and bottom line growing amid widespread loss of marketing exclusive on its key drugs. Shares of the drug giant are down nearly 2 percent since the beginning of 2014.
