Melville, NY: (Mar-16-08) A class action lawsuit was brought against OSI Pharmaceuticals Inc., over its lung-cancer drug, Tarceva. The class action was filed in December 2004, accusing OSI of making false and misleading statements about Tarceva's potential to increase survival from lung cancer. In a recent development in the case, company officials announced that the company has agreed to settle the lawsuit with a $500,000 payout.
Company sources said that the full preliminary settlement amount is $9 million, but the company will only pay $500,000, as the insurance provider will cover the rest. The pharmaceutical company said it does not expect the settlement to have an impact on 2008 results. Under terms of the agreement, the lawsuit will be dismissed with prejudice and without the company or any of its executives admitting any wrongdoing. [
