Toronto, Canada: (Apr-23-08) A class action lawsuit was brought against Biovail Corporation by a Canadian pension plan that dated back more than four years. Sources close to the negotiations stated that the country's biggest publicly traded drug maker recently announced that it has agreed to resolve the class action claims, stating that the compensation would be part of the amount that it agreed to when it settled a US securities class action suit in 2007. Records pertaining to that lawsuit reveal that the company agreed to a total settlement of $138 million.
Company officials said that the deal estimated it would pay about $85 million after the resolution of insurance claims, which was centered on claims Biovail made regarding its two key products, Cardizem LA and Wellbutrin XL. All shareholders who purchased shares between Feb. 7, 2003 and Mar. 2, 2004 are eligible for a payout from the settlement. The US Securities and Exchange Commission is conducting an ongoing inquiry into the company's regulatory and criminal issues that arise from an October 2003 truck accident involving a shipment of its Wellbutrin drug, and Biovail's disclosure of the impact of the accident on 2003 results. The company's new chief executive Bill Wells stated that settling the company's extensive list of lawsuits was one of his top priorities in restoring the company's financial stability and its credibility. [
