Pfizer alleged to have hired dirt diggers to force lawsuit settlement

by Steve Ragan - Dec 10 2010, 10:00

A confidential diplomatic cable from the embassy in Abuja, released as part of WikiLeaks’ cablegate, says that Pfizer hired investigators to uncover dirt on Nigerian attorney general Michael Aondoakaa, so he would be pressured into dropping federal cases against the well-known pharmaceutical company.

In April of 2009, Pfizer Country Manager Enrico Liggeri was present in Lagos for a meeting, where he reported that Pfizer was not happy to be settling criminal and civil lawsuits brought on by the Kano State government. At the time, the diplomatic communication said, “Pfizer’s image in Nigeria has been damaged due to this ongoing case.”

They were facing the lawsuits - one civil and one criminal - for medical tests conducted with Trovan (an oral antibiotic) on children living in Kano during a meningitis epidemic in 1996. The Nigerian state sued because they said the children were harmed by the tests. As reported by The Guardian, who broke the story, six children died on the drug.

“According to Liggeri, Pfizer had hired investigators to uncover corruption links to Federal Attorney General Michael Aondoakaa to expose him and put pressure on him to drop the federal cases. He said Pfizer’s investigators were passing this information to local media,” the leaked cable states.

“A series of damaging articles detailing Aondoakaa’s “alleged” corruption ties were published in February and March. Liggeri contended that Pfizer had much more damaging information on Aondoakaa and that Aondoakaa’s cronies were pressuring him to drop the suit for fear of further negative articles.”

Liggeri commented during the meeting that the lawsuits were “wholly political in nature”. These claims are due to the observation that the NGO Doctors Without Borders used Trovan on other children during the meningitis epidemic, and the Nigerian government took no action.

“He underscored that the suit has had a ‘chilling effect’ on international pharmaceutical companies because companies are no longer willing to conduct clinical testing in Nigeria. Liggeri opined that when another outbreak occurs no company will come to Nigeria’s aid,” the cable added.

Pfizer agreed to the Kano State Attorney General’s settlement offer of $75 million, the cable reports, including a $10 million payment for legal fees, $30 million to the Kano State government, and $35 million for the participants and families.

In a statement, Pfizer said that any notion that they hired investigators in connection to the attorney general was “simply preposterous.”

“The Trovan cases brought by both the federal government of Nigeria and Kano State were resolved in 2009 by mutual agreement. Pfizer negotiated the settlement with the federal government of Nigeria in good faith and its conduct in reaching that agreement was proper,” the statement said.

“Although Pfizer has not seen any documents from the U.S. embassy in Nigeria regarding the federal government cases, any notion that the Company hired investigators in connection to the former Attorney General is simply preposterous.”

With regard to the payouts, Pfizer pointed out that Nigeria dismissed its civil and criminal actions.

“Pfizer denied any wrongdoing or liability in connection with the 1996 study. The Company agreed to pay the legal fees and expenses incurred by the federal government associated with the Trovan litigation,” the statement added.

“Pursuant to the settlement, payment was made to the federal government’s counsel of record in the case, and there was no payment made to the federal government of Nigeria itself. As is common practice, the agreement was covered by a standard confidentiality clause agreed to by both parties.”

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