National Settlement Looms for Fen-Phen Lawsuit

Strategic Insights -

A class-action lawsuit filed by New Jersey users of the fen-phen diet pill cocktail has been put on hold as negotiations for a national settlement progress. Anticipating a settlement, a judge discharged the jury that was hearing evidence in the case, stating that she "anticipates good news." The lawsuit, which involves over 4,100 claims against American Home Products Corp., could result in a payout of $4 billion, including $1.2 billion for future medical examinations for former users and $2.8 billion to settle individual suits.

Key Takeaways:

  • The class-action lawsuit filed by New Jersey users of fen-phen has been pending for several months, with over 4,100 claims against American Home Products Corp.
  • The company has proposed paying $1.2 billion for future medical examinations for former users of fen-phen, such as the 94,000 plaintiffs in the New Jersey case.
  • An additional $2.8 billion has been proposed to settle individual suits from people who claim the drugs harmed them.
  • The lawsuit claims that American Home hid information about fen-phen's possible links to heart-valve disease and an often fatal lung condition.
  • The company marketed the 'fen' half of the combination, fenfluramine, under the brand name Pondimin and made Pondimin's chemical cousin Redux, generically known as phentermine.
  • New Jersey residents suing American Home have not become ill, but want the company to pay for years of future medical checkups.
  • The jury has been hearing evidence intermittently since August, with a week and a half of testimony completed before the judge discharged them.
  • The judge has given both sides until October 12 to reach a settlement, after which she will hear the remainder of the trial from the bench.

Statistics:

  • 4,100: The number of class-action lawsuits filed against American Home Products Corp. over fen-phen
  • 94,000: The number of plaintiffs in the New Jersey case
  • $1.2 billion: The proposed payout for future medical examinations for former users of fen-phen
  • $2.8 billion: The proposed payout to settle individual suits from people who claim the drugs harmed them
  • 1.5 weeks: The amount of time the jury has been hearing evidence intermittently
  • August: The month when the jury started hearing evidence
  • October 12: The deadline for both sides to reach a settlement

Sources:

  • Associated Press - Newark, N.J. - "Anticipating national settlement, judge sends jury home in diet pill lawsuit"
  • New Jersey Superior Court Judge Marina Corodemus
  • American Home Products Corp.
  • Pondimin
  • Redux
  • Phentermine