Pfizer Hit with Securities Fraud Class Action Over Celebrex & Bextra

Pfizer Hit with Securities Fraud Class Action Over Celebrex & Bextra

By Michael Carlin

At least a dozen institutional investors have opted out of a longstanding securities fraud class action lawsuit against Pfizer (NASDAQ: PFE) in order to secure larger judgments. The plaintiffs in the new case include the largest U.S. public pensions: the California Public Employees’ Retirement System (Calpers) and the California State Teachers’ Retirement System (Calstrs); amongst other mutual funds.

Opting out of class action securities fraud lawsuits is increasingly common. This happens when plaintiffs of a larger class action decide that the risk of losing a separate case is worth the potential larger settlements available when they do not have to compete with smaller individual investors in the class.

The Pfizer securities class action lawsuit was originally initiated in 2004 after a study revealed that the cardiovascular risks of Celebrex and Bextra may have been much more serious than expected.

Celebrex (Celecoxib) is a non-steroidal anti-inflammatory drug (NSAID) used to treat diseases such as acute pain and osteoarthritis. Some research has shown that Celebrex can cause an imbalance in the body’s cardiovascular system that leads to an increased risk of heart attack and stroke and other side effects including stomach ulcers and life threatening intestinal problems.

Bextra (valdecoxib) is another NSAID used to treat similar diseases to Celebrex. Some research shows that use of Bextra leads to the development of Stevens Johnson Syndrome and life threatening cardiovascular problems.

Pfizer disputes that it failed to adequately warn of Celebrex side effects or Bextra side effects. The company claims that both drugs were rigorously tested and studied and that it provided accurate information on the benefits and risks of both medications to the FDA, doctors, and consumers

After the 2004 study was released revenues from the sale of Celebrex and Bextra dropped significantly, down $2 billion by the first 9 months of 2005 as compared to the previous year. Pfizer also accordingly saw a huge loss in stock value that totaled $68.4 billion in the year after the study was released.

Pfizer agreed in September 2009 to pay $2.3 billion to settle a Department of Justice investigation into the marketing of its products, including Bextra.

This complaint alleges that Pfizer knew of the real dangers from Celebrex and Bextra and failed to publicly state the real liabilities possible from use of the drug. Plaintiff’s requested damages include compensatory damages, punitive damages, and also interest, and attorneys fees.

The Pfizer Securities Fraud Class Action Lawsuit case is Montana Board of Investments, et al. v. Pfizer Inc., et al., in the U.S. District Court, Southern District of New York, No. 12-cv-9379.

If you were the victim of securities fraud you may be eligible to receive significant damages above and beyond your losses. Visit the Securities Fraud, Stock Fraud Investment Class Action Lawsuit Investigation to learn more.

Updated December 11th, 2012

All securities fraud class action and lawsuit news updates are listed in the Stocks & Securities section of Top Class Actions