"Pfizer agrees to pay $430 million for asbestos litigation"

September 4, 2004

Pfizer, Inc. is the world's largest drug maker and has now agreed to pay $430 million to resolve most personal injury claims against its subsidiary Quigley Co. Pfizer bought Quigley in 1968, which sold products containing asbestos in the 1970s used to coat steel-making equipment.

Asbestos was used heavily until the 1980s as an insulation and fireproofing material but was mostly phased out after deadly illnesses were linked to its exposure. The inhalation of the mineral fibers has been linked to cancer and respiratory illnesses. Quigley's only activity since 1992 has been managing the high amounts of litigation. Pfizer and Quigley have been named in 171,611 pending lawsuits claiming personal injury caused by asbestos, silica or mixed dust exposure.

Quigley filed for federal bankruptcy protection on September 3, 2004. Pfizer is still facing 140,000 claims against American Optical Corp., a business Warner-Lambert bought in 1967 and sold in 1982. When Pfizer acquired Warner-Lambert in 2000, the powerful drug company inherited the liabilities as well.

Congressional leaders are trying to agree on a fund to compensate victims of workplace asbestos exposure. Companies that made products with asbestos and their insurers will finance this fund. Senate Democratic Leader Tom Daschle has proposed a $145 billion fund and Republic Leader Bill Frist has proposed a $140 billion fund. Pfizer is contributing $405 million over 40 years to a trust that would pay remaining and future claims against Quigley.