A lawsuit seeking class action status has been filed by six former Pfizer employees in Puerto Rico federal court alleging the drug company failed to properly manage its retirement plans, causing hundreds of millions of dollars to be lost over the past decade.
The lawsuit claims Pfizer employees were able to accumulate large amounts of company stock that left employees exceptionally vulnerable to fluctuations in the market. The suit says that millions of dollars of retirement funds were lost when negative press about two drugs caused the stock to drop 11 percent in one day alone.
The potential class action lawsuit claims Pfizer violated the U.S. Employee Retirement Income Security Act of 1974 and imprudently invested assets instead of diversifying. The complaint also alleges that Pfizer withheld information that damaged employee investors as shareholders and that Pfizer should have known how potential health risks of some of their drugs would negatively affect stock prices and expose the company to liability lawsuits, the Washington Post reported.
An attorney for the plaintiffs told the Post that “Part of the problem, a large part, is that these plans were extremely overweighted and concentrated in Pfizer and the other related stocks.”
Pfizer has not yet been served with the lawsuit.