Pfizer Will Pay $430 Million to Settle Asbestos Claims Against Products Made by Subsidiary

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> SSRI-Research

> Sat, 4 Sep 2004 23:30:09 -0400

> [sSRI-Research] Pfizer Will Pay $430

> Million to Settle Asbestos Claims Against Products

> Made by Subsidiary

 

>

> Associated Press

> Pfizer to Settle All Asbestos Claims

>

> Friday September 3, 4:58 pm ET

>

>

>

http://biz./ap/040903/pfizer_asbestos_4.html?printer=1

>

> Pfizer Will Pay $430 Million to Settle Asbestos

> Claims Against Products Made by Subsidiary

>

> NEW YORK (AP) -- Pfizer Inc. Friday said it has

> agreed to pay $430 million to settle all lawsuits

> against it alleging injury from insulation products

> made by a subsidiary.

> Pfizer and its Quigley Co. subsidiary were named,

> along with several other defendants, in 171,611

> lawsuits claiming personal injury caused by exposure

> to asbestos, silica or mixed dust.

>

> Pfizer acquired Quigley Co. in 1968. It sold some

> products containing asbestos until the early 1970s.

>

> Pfizer will establish a trust for the payment of

> pending claims as well as any future claims. It will

> contribute $405 million to the trust over 40 years

> through a note, and about $100 million in insurance.

> Pfizer will also forgive a $30 million loan to

> Quigley.

>

> Since 1982, Quigley's main business has been to

> manage the asbestos lawsuits.

>

> As part of the settlement, Quigley will file for

> Chapter 11 bankruptcy. Its reorganization plan must

> be approved by the bankruptcy court and confirmed by

> a vote of 75 percent of the claimants.

>

> Pfizer will take a $229 million charge in the third

> quarter for the settlement.

>

> Analysts polled by Thomson First Call had expected

> the company to earn $4.08 billion, or 54 cents a

> share, in the third quarter.

>

> According to the Pfizer's report for the June

> quarter, its Warner Lambert unit still faced around

> 139,100 asbestos suits related to its former unit

> American Optical.

>

> Pfizer spokesman Paul Fitzhenry said the American

> Optical claims haven't been financially significant

> so far, adding that Warner Lambert has substantial

> insurance.

>

> " We continue to aggressively litigate the American

> Optical Claims while at the same time looking at

> options to resolve the litigation, " Fitzhenry said.

>

> Pfizer shares closed Friday at $32.55, down 15

> cents, or 0.5 percent, on the New York Stock

> Exchange.