Vioxx Malpractice

 

Merck offers $4.85 billion pill payouts to settle VIOXX lawsuits

Designed to treat arthritis pain, a study showed VIOXX doubled the risk of heart attack and stroke in patients taking it for more than 18 months. Withdrawn from the market after a public health advisory from the FDA, the manufacturer, Merck & Co. was still facing tens of thousands of lawsuits.

As of Oct. 9, 2007, the company had been served or named as a defendant in approximately 26,600 lawsuits, representing some 47,000 plaintiff groups in the U.S. alone. Alleging personal injuries resulting from the use of VIOXX, Merck also faced 264 putative class actions. In the suits that had already gone to court, juries had decided in favor of the company 12 times and for plaintiffs five times.

With thousands of trials still to go, Merck negotiated a settlement of $4.85 billion -- one of the largest payouts in the pharmaceutical industry.

 

 

Merck & Co. enters into agreement on VIOXX litigation

The coordinated proceedings are designed to resolve state and federal myocardial infarction (MI) and ischemic stroke claims already filed against the company in the United States. The agreement, which also applies to tolled claims, was signed after a meeting with three of the four judges overseeing the coordination of more than 95 percent of the current claims in the VIOXX litigation.

If certain conditions under the agreement are met, Merck will pay a fixed amount of $4.85 billion into a settlement fund for qualifying claims that enter into the resolution process. This is not a class-action settlement. Claims will be evaluated on an individual basis.

 

Settlement conditions:

The conditions in the agreement, which is open only to those cases filed or tolled on or before Nov. 8, 2007, include:

1. Objective, medical proof of MI or ischemic stroke (as defined in the agreement)
2. Proof of duration of use, based on documented receipt of at least 30 VIOXX pills
3. Administrators of the resolution process will examined individual cases to determine qualification
4. Neither stroke claims that are hemorrhagic in nature nor transient ischemic attacks will qualify

Payment obligations under the agreement will be triggered only if, by March 1, 2008, enough plaintiffs enroll in the settlement process:

1. 85 percent or more of all currently pending and tolled MI claims
2. 85 percent or more of all currently pending and tolled ischemic stroke claims
3. 85 percent or more of all eligible claims involving a death
4. 85 percent or more of all eligible claims alleging more than 12 months of use

The agreement applies only to U.S. legal residents and those who allege that their MI or ischemic stroke occurred in the United States.

Once triggered, Merck's total payment for both funds of $4.85 billion is a fixed amount to be allocated among qualifying claimants based on their individual evaluation. While the settlement did not specify the exact number of claimants covered by this agreement, the total dollar amount is fixed. Payments to individual qualifying claimants could begin as early as August 2008 and then will be paid over a period of time.

 

 

"Creating a process to look at individual claims is the fairest way to efficiently and quickly provide payment to qualified claimants," said Russ Herman, Liaison Counsel in the federal multidistrict VIOXX litigation and Chair of the Plaintiffs' Negotiating Committee. "Specific causation has been a very difficult issue. This is an opportunity to end a long and difficult litigation that has stretched on for more than three years. A fair resolution is in everybody's best interest. This agreement would only apply to claims already filed or tolled."

Plaintiffs requesting additional information should contact the Chair of the Plaintiffs' Negotiating Committee for further information: Russ Herman of Herman, Herman, Katz & Cotlar, LLP at (504) 581-4892.

 

Other risks?

VIOXX is a COX-2 selective nonsteroidal antiinflammatory drug (NSAID). Other COX-2 selective NSAIDs on the market were Celebrex and Bextra, However, on April 7, 2005, Pfizer agreed to suspend sales and marketing of Bextra in the U.S., pending further discussions with the FDA. VIOXX is also related to the nonselective NSAIDs, such as ibuprofen and naproxen.

The FDA stated, "The risk that an individual patient will suffer a heart attack or stroke related to VIOXX is very small. We encourage people taking VIOXX to contact their physician to discuss discontinuing use of VIOXX and alternative treatments. Any decision about which drug product to take to treat your symptoms should be made in consultation with your physician based on an assessment of your specific treatment needs."