S-P to pay $165M to settle disclosure law suit

US firm Schering-Plough is to pay $165.0 million to settle a securities class-action law suit, which alleges that the drug major did  not disclose manufacturing problems to investors. The money will go to a  fund for shareholders who purchased stock in the company between May  2000 and February 2001. S-P denies any wrongdoing and claims that  investors knew about the problems, which were disclosed in Securities  and Exchange Commission filings, but says it will settle the case to  avoid a drawn-out and costly legal battle. It adds that insurance and  existing reserves will cover the payment.