The drugmaker, which
withdrew the controversial cholesterol med seven years ago after it was linked to a severe muscle weakness that caused 31 deaths, has agreed to pay $18.5 million to settle shareholder litigation.
The lawsuits charged Bayer failed to disclose serious health risks and misrepresented its "prior knowledge" of Baycol's dangers, while understating its potential liability for claims from patients and payors. As a result, the shareholders charged the market value of Bayer securities was artificially inflated through February 2003.
There was no trial or findings of fault, and Bayer denies any and all allegations of wrongdoing or liability, according to the settlement announcement, which you can read right here. A hearing is scheduled for September 26 in federal court in Manhattan.
pic thx to o5com on flickr
2 Comments
Ed - If you happen to see this, the link to settlement announcement doesn't seem to work, at least for me.
Beyond that, I am wondering if FDA preemption would impact this sort of lawsuit. "Understating potential liability" would certainly be an indirect way preemption might impact such suits. There would be, in essence, no liability to understate.
Works now. Thanks, Ed (or the computer gods!)