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Clarinex Shareholders

Newark, NJ: (Jan-14-08) A shareholders' derivative suit was brought against Schering-Plough Corp., alleging that the company was responsible for the Food and Drug Administration's delay in approving of Clarinex because of continued manufacturing deficiencies at plants in New Jersey and Puerto Rico, despite several warning letters from the agency. The suit stated that Clarinex was slated to fill the void created by the imminent loss of patent protection for Claritin, the company's blockbuster allergy drug. The plaintiffs alleged that the delay caused a drop in stock prices and harmed the company's reputation.

In a recent development, a federal judge approved a settlement in the shareholders' derivative suit, awarding no damages, but instead granting a $9.5 million fee to plaintiffs counsel and a company pledge to reform its governance. [LAW.COM: SHAREHOLDERS SETTLEMENT]

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