Celebrex, Bextra class action lawsuits explode

Since the recall of Vioxx by Merck, the company has been targeted by victims through hundreds of class action lawsuits. While no accurate estimates are available on a global basis, FDA scientist Dr. David Graham estimates that as many as 139,000 Americans have suffered casualties from taking Vioxx. Despite the fact that Merck has mounted an aggressive attack on Vioxx victims and President Bush is proposing changing the laws of the United States to deny Americans the right to sue a drugmaker even when it markets a deadly drug, analysts expect that Merck may have as much as $38 billion in Vioxx liabilities. The firm has made no provision for these liabilities and may need to file for bankruptcy as the lawsuits move forward. (Related article: Vioxx recall and class action lawsuits hurt Merck's financials)

There is agreement among experts that since Pfizer has chosen to follow the same strategy as Merck, if additional data comes out that Celebrex and/or Bextra actually hurt patients or if FDA recommends that Celebrex and/or Bextra be recalled, Pfizer will face similar class action lawsuits. In fact, many experts believe that since Pfizer has continued to stand behind the safety of both Celebrex and Bextra, any of these events will be catastrophic for the company. In addition to that, the firm has attracted class action lawsuits from shareholders and other investors who argue that due to the problems with Celebrex and Bextra, Pfizer stock has dropped in value. (Related article: Celebrex/Bextra class action lawsuits against Pfizer follow the Vioxx class action lawsuits approach)

Below is an update provided by Pfizer on class action lawsuits related to Celebrex and Bextra":

"As previously reported, 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 efficacy of the gastrointestinal effects of Celebrex. These cases have been consolidated for pre-trial purposes. 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.

As previously reported, Pfizer is a defendant in a number of product-liability suits in various federal and state courts alleging injury as a result of the use of Celebrex, including a purported class action filed in 2001 in the U.S. District Court for the Eastern District of New York. Additional suits, including purported class actions, alleging injury as the result of the use of Celebrex and Bextra have been filed in late 2004 and early 2005.

A number of purported class actions recently have been filed against Pfizer in the U.S. and in Canada alleging consumer fraud as the result of 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 seek damages in unspecified amounts for economic loss.

As previously reported, we received requests for information and documents from the U.S. Department of Justice and a group of state attorneys general concerning the marketing of Bextra and Celebrex. The agencies have also recently sought information and documents relating to the safety of both products. The Company is providing the information and documents sought. (Related article: FDA warns Pfizer on misleading Celebrex and Bextra ads)

Recently, a number of actions, including purported class actions, were filed against Pfizer and certain current and former officers, directors, and employees of Pfizer. These actions were brought in various federal and state courts, with the largest number being filed in the U.S. District Court for the Southern District of New York. These actions include:

1. Several class-action complaints alleging that Pfizer and certain officers violated federal securities laws by misrepresenting the safety of Celebrex and Bextra; (Related article: Vioxx and Celebrex direct-to-consumer advertising to be blamed for injuries)
2. Several shareholder derivative actions alleging that certain of Pfizer’s current and former officers and directors breached fiduciary duties by causing the Company to misrepresent the safety of Celebrex and, in certain of the cases, Bextra; and
3. Several purported class actions filed by persons who claim to be participants in the Pfizer Savings Plan, alleging that Pfizer and certain officers, directors, and employees of the Company violated certain provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) by selecting and maintaining Pfizer stock as an investment alternative when it allegedly no longer was a suitable or prudent investment option."

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