Class action expected against Australian drug administrator

Class action expected against Australian drug administrator

Class action expected against Australian drug administrator

Updated 19 December 2011, 13:10 AEDT

Shareholders and businesses who suffered major losses during Australia's biggest drug recall are expected to announce a class action against the Commonwealth today.

Five years ago the Therapeutic Goods Administration (TGA) suspended Pan Pharmaceuticals' licence and recalled its goods, causing many shareholders and businesses to lose money.

The Commonwealth has paid $AU55 million to settle a damages claim from Pan founder Jim Selim but others are yet to see compensation.

Former TGA head of surveillance Val Johanson now works as a consultant to businesses that were affected by Pan's shutdown.

She says they want compensation, but many are afraid to ask for it.

"There is a real culture of fear between the industry and the regulator," she said.

"I've had two companies, they are too fearful to put their hands out for some dollars in case the TGA targets them."

Ms Johanson said that while the Government has ruled out any inquiry into the actions of the TGA, the matter is far from over.

"I don't think it's acceptable that they just say we're not going to have a review," she said.

"I think they need a proper, full inquiry into the TGA to see why it happened, how it happened and to make sure it never happens again".