Pfizer To Resolve Asbestos Claims On Quigley and 2 Other Dow Movers To Watch
Pfizer (NYSE:PFE): Current price $28.33
On Wednesday, the bankruptcy Judge Stuart Bernstein in Manhattan approved a Chapter 11 plan that will permit Pfizer’s non-operating Quigley Co. to end nearly nine years in bankruptcy, resolving the majority of asbestos claims against the company and its defunct unit. Under the settlement’s terms, Pfizer will contribute assets worth $964 million. Bernstein turned aside a prior plan almost three years ago, deciding that Pfizer was improperly making use of Quigley’s bankruptcy to shield itself from asbestos claims. Then in September 2010, the judge found that Pfizer’s proposed $216.2 million contribution to a previous plan insufficient, considering court testimony that Quigley could face $4.45 billion in claims over 42 years, and that asbestos claimants might have come out better by suing the company under civil tort law.