Monday, January 3, 2011

Part III, Of IV | Keeping Score -- Pharmacia, Hassan & Cox: The Bextra®/Celebrex® Debacle


Who is charged with what, in these earlier posts of mine, covering a consolidated federal ERISA violations putative class action -- which arises from the delay of important negative cardiovascular study results, as Pharmacia's Bextra® and Celebrex® were flogged to an unsuspecting public, and their doctors [see here and here]? That is what the below table sets out. Notice that Mr. Hassan would be charged as a member of both the directors column, and the committee column (and arguably under the corporation column -- as the controlling person of the corporation, from 2000 to 2003).

As before, this story is told entirely from public court pleadings in the ongoing federal ERISA "breach of fiduciary duties" class action in the Southern District of New York. Remember that, in each case below, whenever Pfizer is mentioned, the reference would also (from March 31, 2000 -- through and including April 16, 2003) also refer to Pharmacia, then controlled by Fred Hassan, and Carrie S. Cox.


NATURE OF THE BREACH Pharmacia Pharmacia
Directors
Pharmacia
Committee
Duty to Prudently Invest

a. Permit Plans to make and hold
investment in Company Stock Funds
b. Permit Company Stock Funds to be
invested almost exclusively in
Company Stock
c. Failure to disregard Plan if
necessary to comply with ERISA


Duty of Loyalty


a. Failure to make fiduciary decisions
for the exclusive benefit of the Plans
b. Failure to obtain independent
advice of engage an independent
fiduciary in situations presenting
potential conflicts of interest


Duty of Prudence (to Appoint and
Monitor)


a. Failure to adequately appoint and
monitor
b. Failure to provide complete and
accurate information to other Plan
Fiduciaries
c. Failure to investigate


Co-Fiduciary Liability

Knowing Participation Liability


Part IV -- as to what it all means -- tomorrow.

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