Pfizer is being sued in a class action insurance fraud lawsuit by some of its employees in Puerto Rico who claim the drug maker improperly managed its retirement plans and caused millions of dollars in losses over the past 10 years.
According to the Associated Press, the complaint was filed in Puerto Rican federal court by six former workers who allege that Pfizer encouraged workers toto purchase large amounts of company stock as part of their retirement plans. However, doing so left workers extremely vulnerable to fluctuations in the market. This led to a number of retirement plans failing to be managed in the manner required by U.S. law, according to the complaint.
The former employees also claim the drugmaker withheld data that harmed them as shareholders, and violating the U.S. Employee Retirement Income Security Act of 1974. They also allege that company's officers violated their duties under the law by allowing shares to stay overly invested in the stock and blatantly investing assets in the retirement plans.
Yesterday, Pfizer made an unrelated announcement that it had voluntarily recalled 14 lots of Lo/Ovral®-28 Tablets, as well as 14 lots of Norgestrel and Ethinyl Estradiol Tablets in the U.S. market amid worries that the pills may not be ordered correctly and therefore increase the likelihood of an unplanned pregnancy.
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