Pan customers awarded $67.5m compensation
CUSTOMERS, sponsors and creditors of Pan Pharmaceuticals who launched a class action against the Federal Government after the company was shut down have been awarded $67.5 million in compensation.
Andrew Thorpe, legal adviser to the 170 parties involved in the class action, said the conditional settlement approved last week was negotiated without admissions of wrongdoing by the Federal Government.
“[It ends] an eight-year saga that commenced... when the Government shut down Pan Pharmaceuticals without notice,” he said.
“On that day, hundreds of people lost their jobs, $350 million was wiped off the Sydney stock exchange, and scores of business, customers and service providers of Pan were very badly affected.”
In March 2003, the TGA suspended Pan’s manufacturing licence and ordered the recall of 219 products following reported consumer side-effects from the Pan product Travacalm.