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Company may be out $50 million in Norplant settlement
Posted
9-6-99 Newark, N.J. Makers of the Norplant contraceptive recently agreed to settle lawsuits filed by more than 36,000 women who claim the device caused headaches, irregular menstrual bleeding, nausea, and depression. "Settling these cases was purely a business decision," said Joseph M. Mahady, president of the North America division of Wyeth-Ayerst Laboratories, a subsidiary of American Home Products Corp. "Our legal success has come at a steep price because lawsuits are time-consuming, expensive, and have a chilling effect on research." News reports say the settlement totals more than $50 million, though Wyeth-Ayerst would not confirm the amount. The settlement offers $1,500 to each woman who filed suit before March 1. One attorney representing several thousand women in the case said he will encourage his clients to accept the settlement, saying, "It's the best deal most of them could get." In the past, Wyeth-Ayerst has won three jury verdicts and 20 pretrial summary judgments, and has had about 14,000 Norplant claims dismissed. The Norplant system is a progestin-only contraceptive contained in six capsules that are implanted under the skin of a woman's upper arm. They release a synthetic hormone into the bloodstream that prevents pregnancy for up to five years. Norplant has been used by more than 5 million women worldwide and by more than 1 million women in the United States, where it has been available since 1991. American Home Products, in St. Davids, Penn., parent company of Wyeth-Ayerst, denied any wrongdoing, maintaining that Norplant is still a "valuable contraceptive option" for many women and continues to be recommended by the American College of Obstetricians and Gynecologists, the American Society for Reproductive Medicine, the Planned Parenthood Federation of America, and the American Medical Association.
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