Pfizer and BioNTech have initiated legal action against the governments of Poland and Hungary, claiming non-payment for COVID-19 vaccines ordered during the pandemic, according to statements from lawyers on Tuesday.

EU member countries ordered vaccines for their population through a joint purchase scheme, and so the companies are bringing their case before the courts in Belgium, the European Commission's host country.

As per the legal representation of Poland in this matter, the law firm states that the U.S. and German pharmaceutical companies are seeking payment from Poland amounting to 5.6 billion zlotys, equivalent to 1.3 billion euros (approximately $1.4 billion), along with accrued interest.

Hungary is similarly accused of breaching the contract, but a source familiar with the case informed AFP that Budapest is confronted with a comparatively smaller claim amounting to 60 million euros. This pertains to the purchase of three million vaccine doses.

Pfizer confirmed the cases were underway but would not confirm the sums demanded.

"Pfizer and BioNTech are seeking to recover money owed for Covid-19 vaccine orders which were contractually agreed with these governments, as part of their contract to supply the European Union signed in May 2021," the two companies said.

According to the Brussels law firm Strelia, Poland's disagreement with Pfizer dates back to April 2022.

Then, the Polish government "informed Pfizer Inc. and the EU Commissioner for Health and Food and Safety that it will not take delivery of the vaccines, and it invoked several legal arguments and factual circumstances in support of its position".

In a social media post earlier this month, Zoltan Kovacs, the spokesperson for the Hungarian government, alleged collusion between the European Commission and Pfizer. Kovacs accused them of working together to extract funds from European Union member states.

"It is obvious that these vaccines were ordered and forced on member states in unnecessarily large quantities," said Kovacs, who is Prime Minister Viktor Orban's chief of international communication.

Pfizer refuted these claims and countered with allegations of breach of contract. The company formally lodged a complaint against Poland in September.

The Brussels court informed AFP that an initial hearing is scheduled for January 30.

As of now, no evidence has been presented indicating corruption within the European Commission's joint purchasing scheme. However, EU Ombudsman criticism has been directed at Commission President Ursula von der Leyen for her decision not to include her text messages with Pfizer CEO Albert Bourla in the public record.

Image source: Reuters