Drug-maker seeks remedy for class action blues

KENILWORTH, NJ: Pharmaceutical company Schering-Plough is under fire from angry shareholders for disseminating misleading information and concealing problems arising from its manufacturing practices.

KENILWORTH, NJ: Pharmaceutical company Schering-Plough is under fire from angry shareholders for disseminating misleading information and concealing problems arising from its manufacturing practices.

KENILWORTH, NJ: Pharmaceutical company Schering-Plough is under fire from angry shareholders for disseminating misleading information and concealing problems arising from its manufacturing practices.

At least five law firms have filed class action lawsuits against the company for misleading investors about the likelihood of speedy FDA approval for Clarinex, the follow-up to the company's blockbuster allergy drug Claritin.

But a February 15 Schering-Plough announcement revealed that the 'FDA has advised the company that (good manufacturing practice) deficiencies cited in facility inspection reports must be resolved prior to granting approval (for Clarinex).'

The news caused Schering-Plough's shares to drop from dollars 48 to dollars 38 in after-hours trading.

'Schering-Plough communicated (the misleading information) to the financial community and the public via SEC filings and press releases,' said Doug Risen, an associate with Berger & Montague, one of the firms filing suit.

He explained that the major focus of the suit would be the company's failure to disclose the problems at the plants.

Robert Consalvo, Schering-Plough's director of external communication, would not comment on the class action suits, other than to say the company will defend itself vigorously against the claims.



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