Summary
Pfizer Inc. announced on September 3, 2004, that it and its subsidiary Quigley Company, Inc. are taking steps to resolve all current and future asbestos-related personal injury claims stemming from Quigley's historical product sales. Quigley, acquired by Pfizer in 1968 and which sold asbestos-containing products until the early 1970s, will file for Chapter 11 bankruptcy protection. This move is intended to establish a trust for the payment of all claims. As a result of these actions, Pfizer will record a pre-tax charge of $369 million ($229 million after-tax) in the third quarter of 2004. The company has entered into settlement agreements totaling $430 million with legal representatives for over 80% of claimants. The proposed reorganization plan requires court approval and a 75% affirmative vote from claimants, and upon confirmation, will permanently enjoin all future claims related to Quigley products to the established trust.
Key Highlights
- 1Pfizer and subsidiary Quigley Company, Inc. are resolving asbestos and silica-related personal injury claims.
- 2Quigley Company, Inc., acquired in 1968, sold products containing asbestos until the early 1970s.
- 3Quigley will file for Chapter 11 reorganization to establish a trust for claim payments.
- 4Pfizer will incur a pre-tax charge of $369 million ($229 million after-tax) in Q3 2004 related to these settlements.
- 5Settlement agreements totaling $430 million have been reached with legal representatives for over 80% of claimants.
- 6The reorganization plan requires court approval and claimant vote (75%) for confirmation.
- 7A confirmed plan will permanently direct all future claims to the established trust.