Kano State Is Suing Pfizer For More Than $2 Billion

[*~MuDa~*]

The U.S. pharmaceutical giant, Pfizer, has confirmed in a statement that out of court talks with the Kano State government in northern Nigeria have broken down. Kano State is suing Pfizer for more than $2 billion for a 1996 clinical drug trial that it says killed 11 children. Sarah Simpson has more from Lagos.

In the statement, Pfizer described as "unfortunate" a decision by Kano State officials to call off talks over an alleged illegal clinical drug test.

Kano state officials had previously said discussions intended to reach an out of court settlement with the drug company ended because they were dissatisfied with the way the talks were going. However, in the Pfizer statement, Spokesman Chris Loder said efforts to try the case in the media and intimidate the company and the courts had impeded the process.

Kano State is suing Pfizer for over $2 billion for what it says was an unauthorized clinical trial of a meningitis treatment on children in 1996. They say the trials left 11 children dead, and seriously disabled others.

Pfizer says the 11 children died of meningitis. It says those left disabled display symptoms associated with meningitis survivors.

Pfizer has rigorously maintained that it had the full authorization of the Nigerian federal and state governments before conducting the trial, and that consent was obtained from parents or guardians of all 200 children involved.

Kano State Attorney General Aliyu Umar disputes this. He says the drug company took advantage of poor, illiterate Nigerians to carry out tests amid the panic of an epidemic.

More than 12,000 Nigerian children died in the 1996 epidemic of meningitis, an infection of the nervous system that can kill a victim within hours.

Umar says any money paid to Kano State by Pfizer will go to help the children and families of those involved in the trial. But to date, the families of the children who died and those left seriously disabled say they have not received any money or assistance from their government, and even if a payout is awarded to Kano State, few of the families expect any of the cash to reach them.

Some groups that monitor governmental accountability say Nigeria is one of the most corrupt countries in the world. The country earns billions of dollars each year from oil exports, yet the majority of Nigerians live in poverty.

The Kano civil case against Pfizer continues, with the next hearing scheduled for January 28.

The federal government is also seeking several billion dollars in compensation through federal courts

[Muhsin]

Umar says any money paid to Kano State by Pfizer will go to help the children and families of those involved in the trial. But to date, the families of the children who died and those left seriously disabled say they have not received any money or assistance from their government, and even if a payout is awarded to Kano State, few of the families expect any of the cash to reach them.

Mts! That's always the problem. That makes me, at times, hope the money won't even come to govt. But by Allah's grace this time if govt. won the trial, the money would duly come to the right beneficiaries--Amin.

[Dan-Borno]

To me, Kano State is making a worst decision by refusing
to settle this matter outside the normal court system.
I am very confident that if this matter is taken to the court
it will take another donkey years, and eventually the Kano
State Government will not be able to finance or pursue
vigorously the case.

They should have remembered that Pfizer is a giant company
with international repute and it wont allow itself to be worn
just like that in a court, for it will tarnish its image, which
pose a great danger to its businesses around the world.

This case started in 1996, and we are now in 2007, that is
virtually 10 years, most of the survived victims are either
in their teens or early 20s, and if this case is still referred
back to the court, i am sure, it will take another 10 years
of legal tussle.

The whole world over are now advocating for ADR, meaning
Alternative Dispute Resolution, I think, Kano State Govt.
should also follow suit, at least instead of $2 billion, why
not go for $1 billion?

[*~MuDa~*]

If i got you right DB , are you trying to say that the $2 billion is not realistic? This is Pfizer we are talking about, i think its worth it!

[Dan-Borno]

No, not at all Lanlord, ba haka nake nufi ba,
$2 billion could be a chiken feed to pfizer, but
what they are trying to avoid is the open legal
battle which if they allow will possibly expose
the company to so many things, like another
pharmaceutical company taking advantage in
sabotaging their image, or if the case was worn
by Kano State Government, that will be the end
of Pfizer.  So they will prefer to settle the case
out of court to save them all these risks.

On the part of the Kano State Government,
instead of the money they will spend on filing
motions and counter motions, affidavit and
submitting evidences not to talk about series
of objections, they will save alot, ko?

[*~MuDa~*]

Well that is kind of smart Db, but you know on my part i think its really a good thing that Kano State Government is putting up the fight, at least we have the upper hand dont we?

[Dan-Borno]

Muda, did you read the update news on Kano v Pfizer?
A Kano State High COurt has issued out an Arrest
Warrant to Pfizer's Directors for refusing to honour the
Courts invitation even after they were serve with notice.
The Court ruled out that they will be punished for
contempt.

In a twist, Pfizer also challenged the jurisdiction of the
Kano State High Court on wether it can hear the case
before it talk less of issuing arrest warrant.

This is the legal tussle I am talking about, they will go
on and on filing and filling motions and affidavit
challenging each other.

[gogannaka]

I heard that the case has finally been settled out of court after President Bush ordered the case to be settled.
Pfizer saw the gravity of the presidential directive and decided to settle.
They offered $23 million and was accepted. Were it not for some unscrupulous family members of the deceased children, they would have gotten close to $100million.
Kudos to the chief Negotiator,Bashir Mai sikeli for his strength,resilience and commitment to justice.
Shekarau and Yar'adua helped alot as well. Infact Shekarau's handling of the case was unbelievable especially when you hear it from inside sources.

[Dan-Borno]

that is close to 3 billion nigerian money, which is enough to
take care of everything if our governments are that sincere
enough to channel the money appropriately.  kash, i fear
naija's.

[gogannaka]

Here is a story from Sunday trust:

United States pharmaceutical giant, Pfizer, may have finally agreed  to release the sum of $75 million (about N11.250 billion) as compensation over the 1996 Trovan drug test in Kano State,  Sunday Trust can authoritatively report.


The experiment left over 200 persons, mainly children, with deformities. Some  have died.

A source close to the company told Sunday Trust last night in a telephone interview that of the amount, $35 million is going to be shared among the victims as compensation; $30 million will be paid to Kano State Government for the construction of modern hospitals; and the remaining $10 million will be paid to cover litigation expenses by government on behalf of the victims.

This development, it was gathered, was the drug company's response to a proposal submitted to it in a meeting held last month in Abuja by the stakeholders' delegation that included the Kano State Attorney-General and Commissioner for Justice, Aliyu Umar, a representative of the victims' parents, Mustapha Maisikeli, Barrister Maryam Uwais,  and the state Commissioner for Health, Hajiya Aisha Isiyaku Kiru, the former Head of State, General Yakubu Gowon (rtd) and former American President Jimmy Carter. The two former presidents have been brokering an out-of-court resolution of the issue.      It was gathered also that General Gowon has intimated Governor Ibrahim Shekarau about the giant company's acceptance of the proposal. The deal will be sealed in Rome in March this year.

"The money would be finally released to us in March in Rome when we are going to meet with General Gowon and Pfizer's representatives to finalise the deal," a parent of a victim told this newspaper.

According to him, it is only when the agreement is written and the money received that the stakeholders would withdraw both the civil and criminal suits pending against Pfizer.

When Sunday Trust contacted the drug company over the issue, its spokesman Christopher Loder, said in a statement issued in New York that "the company does not believe it is appropriate to comment on the substance of its discussions with the governments at this time".

"The Company has made and continued to make serious efforts to reach an appropriate and amicable resolution of the Nigerian federal and Kano state cases pertaining to Trovan. The settlement process is ongoing, and Pfizer is prepared to stay at the negotiating table until agreement are reached. We believe that settlement is in the best interest of all parties, and will avoid the continued cost and distraction of litigation, and can help improve and expand health care for the people of Nigeria," the statement said.

This settlement follows months of negotiations between Pfizer and the Kano state government, representing the victims. The talks were brokered by General Gowon and US former president Jimmy Carter.

It could be recalled that Kano State had filed civil and criminal suits against Pfizer, demanding $2.75 billion in compensation for what it said was an illegal test of the meningitis vaccine Trovan on 200 children in 1996.

Eleven of those children are alleged to have died from the drug test which also caused deformities in 189 others. A separate $6.5 billion suit has been lodged against the US drug firm by the Nigerian federal government.

Pfizer has denied any wrong-doing and insisted that the trial conformed to ethical practices and was carried out with the consent of the Nigerian government, insisting that "the company has said all along that all clinical evidence points to the fact that any deaths or injuries were the direct result of the devastating meningitis epidemic, and not the treatment provided to patients in the Trovan clinical study. With a survival rate of 94.4%, Trovan helped save lives and was at least as effective as the best treatment available at Kano's Infectious Disease Hospital (IDH). For patients who did not participate in the Trovan clinical study, the survival rate was slightly less than 90%," Pfizer insisted in a statement.

A source closed to the victims told our reporter in confidence that it was not true the rumour going round that it was the government that pressurized them to accept the drug giant's proposal. The decision, he said, was borne out of sympathy with the victims and their parents, as some of them had already died of frustration.

[bakangizo]

Amma this one no be small money :o I just hope the money would judiciously utilised, if/when the money comes.

[umar sani]

I wish government will utilize the money to suitable victims.