Astra Settles Harassment Suit With EEOC

Astra USA Inc. on Thursday settled the largest sexual-harassment case ever filed by the U.S. Equal Employment Opportunity Commission, for $9.85 million plus interest, and said it will sue its former chief executive to recoup the money.

Astra USA, a unit of Sweden’s largest drug maker, Astra, will establish an account to hold the money and bear interest, bringing the total amount of the settlement to more than $10 million, according to the EEOC. The agency said all employees hired since Jan. 1, 1993, with evidence they were harassed are entitled to collect from the account.

As part of its investigation, the EEOC charged that female employees in training and at national sales meetings were told their performance evaluations depended upon their socialization with management. Employees who complained were either fired, intimidated or forced to sign letters requiring them to disavow that sexual harassment occurred and deny it to the media, the suit said.

“Sexual harassment was part of the ‘Astra Way,’ ” the EEOC said. “The commission identified approximately 80 victims of discrimination.”

The EEOC’s investigation began in May 1996, after Astra USA sales representatives charged that management members, including former President and Chief Executive Lars Bildman, harassed them. Astra USA is based in Westborough, Mass.

In a statement, Astra USA’s current president, Ivan Rowley, said the company cooperated with the investigation and conducted its own internal review. Astra fired Bildman in 1996 after finding he used company money to pay for vacations, prostitutes and work on his homes.

“We want to remedy past wrongs,” Rowley said. “To each person who has suffered because of that behavior, I offer our apologies. We are sorry for what happened.”

The company said it filed suit this week in Boston’s Suffolk County Superior Court to recoup the cost of the EEOC settlement from Bildman and other money he allegedly misused.

Bildman was unavailable to comment.

Astra’s Series A American depositary receipts rose 13 cents to close at $19.50 on the New York Stock Exchange.