Business

Frail Pan founder testifies in court

Kate Lahey
March 4, 2010

LOOKING frail and struggling to walk at times, the founder of Pan Pharmaceuticals, Jim Selim, was examined in the Federal Court yesterday as part of a $120 million class action against the Commonwealth government and five officers of the Therapeutic Goods Administration, led by customers of the failed drug company.

Mr Selim, who is suffering from leukaemia, was examined by lawyers in the case. An application from Fairfax Media to report on Mr Selim's appearance was unsuccessful.

Justice Geoffrey Flick ruled that the proceedings should remain private because Mr Selim's account was not yet evidence in the civil case and to allow reporting of it would have been unfair.

About 165 sponsors, creditors and customers have joined Pharm-a-care Laboratories in the class action, and three other companies are running their own cases alongside it.

Mr Selim received a $50 million settlement from the government in 2008 over the decision by the Therapeutic Goods Administration to urge a recall of Pan products in 2003 and withdraw the complementary medicine maker's licence.