Pfizer 2005 Annual Report Download - page 66

2005 Financial Report 65
Notes to Consolidated Financial Statements
Pfizer Inc and Subsidiary Companies
Viagra
A number of lawsuits, including purported class actions, have been
filed against us in various federal and state courts alleging that
Viagra causes certain types of visual injuries. The plaintiffs in the
purported class actions seek to represent nationwide and certain
statewide classes of Viagra users. All of the actions seek damages
for personal injury, and the purported class actions also seek
medical monitoring. In January 2006, the federal court cases
were transferred for consolidated pre-trial proceedings to a
Multi-District Litigation (In re Viagra Products Liability Litigation
MDL-1724) in the U.S. District Court for the District of Minnesota.
Zoloft
A number of individual lawsuits have been filed against us in various
federal and state courts alleging personal injury, including suicide and
suicide attempt in certain cases, as a result of ingesting Zoloft.
C. Consumer and Commercial Matters
Neurontin
A number of lawsuits, including purported class actions, have been
filed against us in various federal and state courts alleging claims
arising from the promotion and sale of Neurontin. The plaintiffs
in the purported class actions seek to represent nationwide and
certain statewide classes consisting of persons, including
individuals, health insurers, employee benefit plans and other
third-party payors, who purchased or reimbursed patients for
the purchase of Neurontin that allegedly was used for indications
other than those included in the product labeling approved by the
FDA. In October 2004, many of the suits pending in federal courts,
including individual actions as well as purported class actions, were
transferred for consolidated pre-trial proceedings to a Multi-
District Litigation (In re Neurontin Marketing, Sales Practices and
Product Liability Litigation MDL-1629) in the U.S. District Court for
the District of Massachusetts. Purported class actions also have
been filed against us in various Canadian provincial courts alleging
claims arising from the promotion and sale of Neurontin.
A number of individual lawsuits also have been filed against us
in various U.S. federal and state courts and in certain other
countries alleging personal injury, including suicide and suicide
attempt in certain cases, as a result of ingesting Neurontin.
Certain of the federal court actions have been transferred for
consolidated pre-trial proceedings to the same Multi-District
Litigation referred to in the preceding paragraph.
Lipitor
Since September 2005, three purported class actions have been filed
against us in various federal courts alleging claims relating to the
promotion of Lipitor. In January 2006, two of the actions were
voluntarily dismissed without prejudice. In the remaining action,
which is pending in the U.S. District Court for the Southern District
of Florida, the plaintiffs seek to represent a nationwide class
consisting of women (regardless of age) and men over age 65
who in each case had no history of heart disease or diabetes and
who purchased Lipitor within four years before the filing of the
action. The plaintiffs allege that the Company engaged in false and
misleading advertising in violation of state consumer protection
laws by allegedly promoting Lipitor for the prevention of heart
disease in the aforementioned two groups. The action seeks
monetary and injunctive relief, including treble damages. In
addition, a purported class action on behalf of residents of the
Province of Quebec has been filed against us in Canada that asserts
claims under Canadian law and seeks relief substantially similar to
the claims asserted and the relief sought in the U.S. action.
Average Wholesale Price Litigation
A number of states and counties have sued Pharmacia, Pfizer and
other pharmaceutical manufacturers alleging that they sold
certain products at prices lower than the published average
wholesale price (AWP). The AWP is used to determine
reimbursement levels under Medicare Part B and under many
private-sector insurance policies and medical plans. Several of the
suits also allege that Pharmacia and/or Pfizer did not report to the
states its best price for certain products under the Medicaid
program. Each of these suits alleges, among other things,
deceptive trade practices and fraud and seeks monetary and
other relief, including civil penalties and treble damages.
In addition, Pharmacia, Pfizer and other pharmaceutical
manufacturers are defendants in a number of purported class
action suits in various federal and state courts brought by
employee benefit plans and self-styled public interest groups
that assert claims similar to those in the state and county actions.
These suits allege, among other things, fraud, unfair competition
and unfair trade practices and seek monetary and other relief,
including civil penalties and treble damages.
All of these state, county and purported class action suits were
transferred for consolidated pre-trial proceedings to a Multi-
District Litigation (In re Pharmaceutical Industry Average Wholesale
Price Litigation MDL-1456) in the U.S. District Court for the District
of Massachusetts. Certain of the state suits and one of the private
suits have been remanded to their respective state courts.
D. Celebrex and Bextra Matters
In 2003, several purported class action complaints were filed in the
U.S. District Court for the District of New Jersey by persons who claim
to have been purchasers of publicly traded securities of Pharmacia
during the period from April 17, 2000 through August 22, 2001 (the
Purported Class Period). Named as defendants in the actions are
Pharmacia, Pfizer and certain former officers of Pharmacia. The
complaints allege that the defendants violated federal securities laws
by misrepresenting the data from a study concerning the
gastrointestinal effects of Celebrex. These cases have been
consolidated for pre-trial proceedings in the District of New Jersey
(Alaska Electrical Pension Fund et al. v. Pharmacia Corporation et al.).
Plaintiffs purport to represent a class of all persons who purchased
Pharmacia securities during the Purported Class Period and were
damaged as a result of the decline in the price of Pharmacia’s
securities allegedly attributable to the misrepresentations. Plaintiffs
seek damages in an unspecified amount.
Pfizer is a defendant in product liability suits, including purported
class actions, in various U.S. federal and state courts and in certain
other countries alleging personal injury as a result of the use of
Celebrex and/or Bextra. These suits include a purported class
action filed in 2001 in the U.S. District Court for the Eastern
District of New York as well as actions that have been filed since
late 2004. In addition, beginning in late 2004, purported class
actions have been filed against Pfizer in various U.S. federal and
state courts and in certain other countries alleging consumer
fraud as the result of alleged false advertising of Celebrex and
Bextra and the withholding of information from the public
regarding the alleged safety risks associated with Celebrex and
Bextra. The plaintiffs in these consumer fraud actions seek
damages in unspecified amounts for economic loss. In September
2005, the U.S. federal product liability and consumer fraud actions
were transferred for consolidated pre-trial proceedings to a
Multi-District Litigation (In re Celebrex and Bextra Marketing, Sales