Briefcase

Tobacco companies seek lawsuit delay

RICHMOND, Va. – America’s largest cigarette makers say the federal judge presiding over a decade-old lawsuit against the industry should delay her decision while other cases challenging new tobacco regulations are decided.

A U.S. District judge in Washington had ordered the parties to submit their views on whether to delay a decision in the case in which the companies were found to have concealed the dangers of smoking. The Justice Department says the decision shouldn’t be delayed.

Earlier this year the government proposed corrective statements that it says the companies should be required to make as part of the lawsuit. It also wants the industry to pay for self-critical ads.

Also pending are two unrelated lawsuits challenging marketing restrictions and new cigarette warning labels proposed under new federal authority gained in 2009.

Associated Press

Merck settles in drug overpayment case

BOSTON – Drugmaker Merck & Co. will pay Massachusetts $24 million to settle a civil lawsuit accusing a former subsidiary of causing the state to overpay pharmacists for a widely used asthma medication.

State Attorney General Martha Coakley announced Tuesday the deal with Merck and 12 other drugmakers that settled previously, which enables the state to recover more than $47 million for Medicaid, a federal-state health care program for the poor and disabled.

The settlement comes more than a year after Merck announced plans to appeal a federal court verdict finding it liable for about $4.6 million in compensatory damages related to pricing of three generic albuterol products manufactured and sold by the defunct Warrick Pharmaceuticals.

Under the settlement, Merck doesn’t admit liability or wrongdoing. The Whitehouse Station, N.J.-based company says the deal eliminates the uncertainty of ongoing litigation.

Associated Press

GM to cover warranties on pre-2010 Saabs

DETROIT – General Motors says it will honor warranties of Saab cars that were sold in the U.S. and Canada while the Swedish automaker was part of GM.

Saab filed for bankruptcy in Sweden on Monday. The company has suspended warranty coverage for all vehicles in North America.

GM said it will cover the warranties if Saab doesn’t. GM will pay warranty costs for about 48,000 Saabs in the U.S. and 9,000 in Canada. The cars are from the 2009 model year or older, except for a few 2010s in Canada.

GM says Saab owners should still contact their dealers for warranty work.

GM sold Saab to Dutch luxury sports car maker Spyker Cars in 2010.

Associated Press