Pfizer Executives Sued Under Securities Laws for Allegedly Concealing Clinical Trials Results
Posted 02 April 2012 | By
A federal judge refused to dismiss a case against Pfizer and five former executives for allegedly violating federal securities law by concealing clinical trial results, reports The Courthouse News Service.
The class action lawsuit, filed by the Teacher's Retirement System of Louisiana, accuses the company and executives of violating federal securities laws by omitting the results of unfavorable clinical trials from public filing statements made by Pfizer.
The defendants-which include former Pfizer CEO Henry McKinnell and current Forbes columnist John LaMattina-claim their comments were taken out of context.
District Court Judge Laura Taylor Swain disagreed.
"The record now before the court is insufficient to warrant reconsideration of the decision denying the motion to dismiss the Consolidated Class Action Complaint," noted Swain. "Nor does it demonstrate clearly the level of bad faith conduct that might warrant the imposition of a terminal sanction dismissing the plaintiffs' claims."
Courthouse News Service - Pfizer, Execs Can't Duck Securities Class Action