OSI settle over Tarceva law suit

OSI Pharmaceuticals says that it has reached a preliminary agreement to settle a putative class action law suit relating to alleged misleading statements about its lung cancer drug Tarceva (erlotinib) filed on or about December 16, 2004, in the US District Court for the Eastern District of New York against the firm, certain of its present and former executive officers and current and previous members of its board of directors.

Under the terms of the settlement, the pending action will be dismissed with prejudice and without any admission of liability on the part of the company or any of the individually named defendants. The amount of the settlement is $9.0 million. Around $500,000 will be paid by OSI and the balance by the drugmaker's insurer. The settlement will have no impact on the company's 2008 financials. The terms of the settlement are subject to court approval.