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Drug maker to pay billions in fen-phen settlement
Posted
10-18-99 Madison, N.J. Hoping to avoid thousands of potential lawsuits, American Home Products Corp. has agreed to pay $4.8 billion over 16 years to settle claims by consumers who took the diet drug combination "fen-phen." The nationwide class-action settlement offers a range of possible benefits to claimants, including a maximum of $1.4 million per individual in cash settlements, payments for the cost of follow-up medical tests, and refunds for the cost of the drugs. The settlement, developed by attorneys for both American Home Products and the plaintiffs, must still be approved by a federal judge. "This settlement provides fair and equitable terms for both diet drug claimants and American Home Products," said John R. Stafford, president and CEO of the company, in a statement. An estimated 5.8 million people took the dexfenfluramine and fenfluramine combination before the company voluntarily withdrew it from the market in 1997 after the FDA presented evidence that the drugs could cause heart valve damage. Since then, thousands of lawsuits have been filed nationwide. Advocates for plaintiffs' rights hailed the settlement. "I hope this decision will result in increased scrutiny by federal agencies and drug manufacturers during the approval process and when there are reports of potential problems with existing drugs," said Sherri Reed, RN, president of the Glenview, Ill.-based American Association of Legal Nurse Consultants and a legal nurse consultant with the personal injury law firm of Wilson Kehoe & Winingham in Indianapolis. The settlement is being offered to anyone who used fen-phen, whether the individual has filed suit or not. Consumers will have 90 days following approval of the settlement to sign up for the benefits. Individuals still have the right to opt out of the settlement and file their own suit. The company has set up a toll-free number, (800) 386-2070, for information and registration.
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