Entries in the 'Drug Liability Settlements' Category ↓

The plethora of pharmaceuticals and drugs being introduced into the marketplace each year does not come without consequences. The drug approval process in the United States, although considered to be one of the most comprehensive in the world, is not fail safe. Drugs are sometimes approved for use and rushed into production without full knowledge of the long-term and potentially harmful effects they may have on patients. The result is a large case load of drug liability class action lawsuits that enter the courts each year.

Drug companies are sued every year for false claims, negative side effects, illnesses caused by medications, and premature deaths caused by prescription medicines. When a drug company comes under fire, and when a plaintiff has a legitimate complaint, drug cases often become class action lawsuits that can cost a pharmaceutical manufacturer billions if claims against the company are found to be true.

Drug liability class action lawsuits are often based on false advertising claims or a misuse of the drug for a particular ailment. Often it is easier for a drug company to settle with the plaintiff rather than to go to court and risk having their drug put under intense scrutiny.

Eleven drug manufacturers have entered into a preliminary settlement with The United States District Court for the District of Massachusetts to cover a lawsuit claiming that the companies artificially inflated the average wholesale price of approximately 200 drugs, thus increasing the co-payments and full payments that consumers and others paid. A full list of the drugs, including Depo prevera, Morphine sulfate, and Sodium chloride can be found at http://www.awptrack2settlement.com.

This preliminary settlement includes almost $21.8 million dollars, which would be distributed to eligible consumers who paid a percentage co-payment or full price of their prescription from January 1, 1991 and March 1, 2008. Those who qualify would receive a minimum of $35 dollars back. Those who paid a flat co-payment would not be eligible under this settlement.

The defending drug companies deny any wrongdoing, but have agreed to the terms of the preliminary settlement in order to resolve the litigation and avoid any further expenses and inconveniences if they were to continue fighting the charges. Council for the plaintiffs Steve W. Berman stated that “the proposed settlement ensures that consumers, Medicare, and insurers have the opportunity to get back some of the money they paid for these drugs.”

On December 16, 2008 the district court will hold a hearing to consider whether this proposal is fair and adequate to cover the potential claims and attorney fees. Detailed information on the drugs, companies and claim forms can be found at AWP Track 2 Settlement.

An Atlanta Federal Judge has ordered the operators and founders of a now defunct online pharmaceutical business to pay fines totaling $15.8 million for fraudulent claims they made about their drugs to the US Federal Trade Commisision. The order also held Dr. Terrill Mark Wright responsible for false advertising claims and is to pay $15.4 million to compensate consumers for his part in promoting drugs created by the National Urological Group, the National Institute for Clinical Weight Loss Inc. and Hi-Tech Pharmaceuticals Inc. among others.

U.S. District Judge Charles A. Pannell, who issued these orders, called the violations against the FTC “numerous and grave.”

Birmingham lawyer J. Stephen Salter, who represents Jared Wheat, one of the corporate officers to be held accountable, stated that his client “is doing everything by the book” and that he is “in complete compliance” with how online pharmacies are to be operated. Salter plans to file an appeal in the 11th Circuit Court of Appeals.

On May 29^th, an appeals court in Texas overturned a jury ruling in favor of Carol Ernst, who had sued Merck, the creators of Vioxx, after her husband Robert died from taking the drug. The appeals court decided that the plaintiffs had not proven that Vioxx was the cause of Mr. Ernst’s death. In a separate appeals court ruling in New Jersey, a ruling against Merck was greatly reduced. The court overturned the jury’s decision to find Merck guilty of committing consumer fraud and responsible for paying punitive damages. The court ruled that Merck was only responsible for paying compensatory damages to the tune of $4.5 million.

These rulings left the plaintiffs with just three minor victories against Merck of the total twenty cases against the pharmaceutical company which had reached juries. Mark Lanier, one of the plaintiffs’ lawyers, promised to appeal after criticizing the decision. However, these rulings will make little difference as the plaintiffs and Merck have already agreed to a payout of $4.85 billion to the 50,000 plaintiffs that have sued the company claiming that Vioxx was responsible for causing the drug’s users heart attacks or strokes. The plaintiffs have until June 30^th to reach a final settlement agreement.