Pfizer's Diversity Program Faces Legal Heat, Advocacy Group Revives Discrimination Case

Advocacy group Do No Harm has made a case before the New York-based 2nd U.S. Circuit Court of Appeals to resurrect its lawsuit against pharmaceutical giant Pfizer Inc PFE, claiming that Pfizer's fellowship program, designed to enhance diversity within the company, discriminates against white and Asian-American applicants.

A lawyer representing Do No Harm argued that the lower-court judge's decision to dismiss the case based on a lack of standing was flawed, Reuters noted. 

The group contends that some white and Asian student members were fully qualified to apply for the fellowship program but were denied the opportunity.

Pfizer, however, defended its position, asserting that Do No Harm's allegations were unsubstantiated and that the program had been modified to accept applicants of any race beginning with the 2023 class, as long as they meet specific non-race-based criteria, according to Samantha Chaifetz of DLA Piper.

Despite these changes, Do No Harm maintains that the program is not entirely race-neutral, as it aims to increase the representation of Black, Latino, and Native American leaders at the company.

The panel of judges at the 2nd Circuit appeared divided on the issue, with some expressing uncertainty about evaluating the program's modifications and whether they warranted reviving the case.

The lawsuit was filed in September 2022, shortly before the U.S. Supreme Court considered affirmative action cases involving Harvard University and the University of North Carolina. 

In June, the Supreme Court's conservative majority ruled against race-conscious college admissions policies.

Price Action: PFE shares are down 1.03% at $33.55 on the last check Wednesday.

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