Lilly to appeal $450 million fine in Brazil labor case
US drug major Eli Lilly (NYSEL LLY) revealed on Friday that the 2nd Circuit of the Labor Court of Paulinia in the state of Sao Paulo, Brazil, has ruled against the company's local subsidiary, Eli Lilly do Brasil.
The Court decision was in a labor case alleging some employees were exposed to hazardous materials in a manufacturing facility operated by the company between 1977 and 2003. The presiding judge estimated the impact of its order to be around $450 million.
A group of former employees in Brazil allege they were exposed to chemical substances at the Brazil manufacturing facility. However, the alleged contaminants – benzene and heavy metals – were never used in the manufacturing operations at the facility. In addition, the published ruling is based on inaccurate scientific claims, as well as mathematical errors, Lilly argued.
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