News Coverage
Pfizer asbestos charge
Published September 3, 2004
Pfizer, the world's largest drugmaker, yesterday said it would take a third-quarter pre-tax charge of Dollars 369m to settle all outstanding asbestos litigation claims against it and Quigley, a wholly-owned subsidiary.
Pfizer and Quigley have been named, along with numerous other defendants, in 171,611 lawsuits claiming personal injury allegedly caused by exposure to asbestos, silica or mixed dust.
Quigley was acquired by Pfizer in 1968 and sold small amounts of products containing asbestos until the early 1970s.
Under a reorganisation plan intended to resolve all pending and future claims, Pfizer said Quigley would file for Chapter 11 bankruptcy protection in New York, if approved by a vote of 75 per cent of claimants.
In connection with that filing, Pfizer has settled with lawyers representing more than 80 per cent of the claimants for a total of Dollars 430m.
Pfizer has also established a trust for the payment of all remaining pending claims as well as any future claims alleging injury from exposure to Quigley products.
Pfizer will contribute Dollars 405m to the trust over 40 years through a note, as well as about Dollars 100m in insurance. Pfizer will also forgive a Dollars 30m loan to Quigley.
"The steps we announce today will, with court approval, establish a responsible and orderly process for the fair payment of these claims, while at the same time minimising the costs, risks, and distractions of litigation that has spanned several decades," said Jeff Kindler, executive vice-president and general counsel at Pfizer.
In a report this year, the Environmental Working Group said asbestos exposure was still common in the US and was predicted to kill 100,000 Americans in the next decade.