Australia to pay damages for drug recall
Updated
The lawyer for the former head of Pan Pharmaceuticals in Australia has described a $US43 million payout to his client as vindication.
Our reporter Jenya Goloubeva says the government has welcomed the resolution of the long-running legal dispute.
The Federal Court found the Therapeutic Goods Administration had been negligent in ordering the largest recall in Australian history when it recalled the travel sickness drug, Travacalm in 2003.
The manufacturer of the drug Pan Pharmaceuticals collapsed after the recall and its founder Jim Selim was seeking $US174 million dollars in damages from the Federal Government.
Mr Selim's lawyer Andrew Tharpe says the landmark decision finally vindicates his client.
The court has also ordered the Commonwealth to pay $US4.3 million for Mr Selim's legal costs.
Mr Selim has called for an inquiry into the collapse of his business, but the government says there have been several reviews since the case began and there are no plans for further inquiries.
