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Aortic or Mitral Valve Regurgitation: 2003 Tips for Fen Phen Matrix Claimants
Brown v. American Home Products Corporation Diet
Drugs
This is the court's approval of
the settlement in the Fen-Phen class action products
liability case. The very long opinion details the
history of the drugs, the procedural background of
the litigation, the evidence as presented by parties
in their motions before the court, and the rationale
for approving the settlement. This litigation
involves claims regarding the health effects of two
related prescription drugs - fenfluramine and
dexfenfluramine. Fenfluramine is an appetite
suppressant that affects blood levels of the
neurotransmitter, serotonin. Dexfenfluramine, the
"d-isomer" of fenfluramine, is chemically related to
fenfluramine and acts as an appetite suppressant by
stimulating the release of serotonin from nerve
cells in the brain and by reducing the reuptake of
the released serotonin. In 1973, The United States
Food and Drug Administration ("FDA") approved A.H.
Robins, Inc.'s new drug application to market
fenfluramine in the United States. After the Dalkon
Shield litigation settlement, the assets of Robbins
- including fenfluramine were acquired by American
Home Products (AHP). AHP had the exclusive right to
market fenfluramine (trade name - Pondimin) in the
U.S. until 1997. Sales of Pondimin were relatively
flat until 1992, when the regimen popularly known as
"Fen-Phen" was developed. With the introduction of
"Fen-Phen" therapy to the market place, sales of
Pondimin skyrocketed. From January 1995 to
mid-September 1997, approximately 4,000,000 persons
in the United States took the drug Pondimin.
Dexfenfluramine was developed by Les Laboratories
Servier S.A. ("LLS") in France. The drug afforded
the same anorexic effects as Pondimin without the
need to add phentermine to ameliorate adverse side
effects. Before 1994, the Lederle Division of
American Cyanamid Company had the right, together
with Interneuron Pharmaceuticals, Inc., to develop
and promote dexfenfluramine in the United States
under the trade name "Redux." In 1994, AHP acquired
American Cyanamid. Following that acquisition,
responsibility for the development and promotion of
Redux in the United States in conjunction with
Interneuron was assumed by AHP. Interneuron received
approval to market Redux in the United States in
mid-1996. As with Pondimin, sales of Redux were
brisk. From June 1996 through September 15, 1997,
two million people in this country took Redux.
Fen-phen maker agrees to $3.75 billion settlement
(CNN) -- American Home Products
Corporation (AHP), makers of the diet drug
combination fen-phen, agreed Thursday to pay $3.75
billion in compensation to thousands of people who
used the diet drugs before they were removed from
the market in 1997 after being linked to heart valve
disease.
"Settling this matter was in the
best interest of those who used Pondimin or Redux as
well as of the company," said AHP President and
Chief Executive Officer John R. Stafford. "We
believe that this agreement is a sound way to
resolve the claims raised by diet drug users and
represents a prudent course for our company. It
offers peace of mind to those who used the drugs and
permits the company to move beyond the uncertainty
and distractions of litigation."
Fen-Phen
Fee of $567 Million
In April 1999, Wyeth, the PMC, and
a coalition of counsel involved in the state court
class actions began to negotiate a nationwide
settlement. On November 18, 1999, they executed an
elaborate settlement agreement (the “Settlement
Agreement”) that contemplated a series of options
for class members.6 At the outset, class members
could obtain an echocardiogram at Wyeth’s expense,
to determine if they suffered from VHD, or they
could exercise an initial opt-out from the
settlement and pursue their claims in separate tort
cases. Class members who chose not to take the
initial opt-out and were diagnosed with VHD would
have a second choice to make: they could receive a
cash and medical services benefit or exercise an
intermediate opt-out from the Settlement Agreement,
Judge resigns in Ky. fen-phen scandal
Last May 10 we reported on the
questions that were being asked about a sealed
settlement of Kentucky fen-phen claims which had
included (along with vast sums in legal fees) the
quiet diversion of $20 million into a mysterious new
charitable entity called the Kentucky Fund for
Healthy Living. Now the mystery has turned to
scandal: the judge who approved the settlement,
Joseph F. (”Jay”) Bamberger has resigned after
allegations surfaced that he was serving as a
director of the fund, receiving $5,000 a month
(three of the plaintiff’s lawyers were also paid
directors). The state’s Judicial Conduct Commission
said Bamberger’s actions “shock the conscience” and
he faced possible removal had he not resigned.
Particular attention is being focused on Bamberger’s
close ties to Mark Modlin, a trial consultant in the
fen-phen case who has had co-investments with the
judge. The alleged closeness between Bamberger and
Modlin had led to protests from litigants in a
number of earlier cases, including a high-profile
priest-abuse case against the Catholic Diocese of
Covington.
Mistrial declared for 2 lawyers in Ky. fraud case
Charged with taking $65 million,
attorneys await new trial from jail.
COVINGTON, Ky. - A judge declared a mistrial
Thursday in the case of two lawyers charged with
defrauding clients of $65 million in a diet-drug
settlement after jurors said they could not reach a
verdict.
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