Source: Pfizer, Nigeria Settle Antibiotic Lawsuit

Drugmaker Pfizer Inc. and the Nigerian government have resolved a long-running legal dispute over allegations children there were harmed in a 1996 Pfizer study of an experimental antibiotic during a meningitis outbreak.

The settlement calls for a $75 million payment by Pfizer, according to a person familiar with the negotiations.

That total includes about $35 million to be distributed among victims in the case, $30 million to improve health care in the Nigerian state of Kano, and about $10 million to cover that state's legal costs, according to the source, who requested anonymity because the talks have not been completed.

An official announcement was expected Thursday.

Eleven children died during the two-week test of Trovan, and others were left with brain damage, paralysis, blindness or slurred speech. The Nigerian government argued Pfizer was to blame, while the company countered that it followed proper procedures in the 200-patient study and that any harm was due to meningitis, a deadly bacterial disease endemic in Nigeria.

Kano state led a series of lawsuits against New York-based Pfizer seeking damages — initially requesting more than $5 billion.

The state government and Pfizer in May said they had a tentative agreement, not yet finalized, for Pfizer to pay a $75 million settlement.

Pfizer spokesman Chris Loder confirmed Wednesday that a resolution had been reached but declined to discuss details, saying the agreement was expected to be finalized Thursday.

The resolution "will avoid the continued cost and distraction of litigation, and can help improve and expand health care for the people of Nigeria," Loder said.

He said Pfizer stands by the 1996 study. It "was conducted with the approval of the Nigerian government, consent of the participants' parents or guardians, and was consistent with Nigerian law," he said.

Meanwhile, lawyer Richard Altshuler of West Haven, Conn., who said he represents 111 alleged victims jointly with another firm, has been trying to block the settlement, arguing the agreement would shortchange victims and send millions of dollars to Nigerian officials. Altshuler wants to sue Pfizer in the U.S. court system, where his clients might be awarded more money.