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Pharmaceutical industry

Silicone Breast Implant Manufacturers to Pay $5.6 Billion to Affected Women

Strategic Insights

— 2 min read

United States manufacturers of silicone breast implants have agreed to pay $5.6 billion to women whose health has been affected by the implants, following a settlement reached at the weekend. Almost all large manufacturers are part of the agreement, which was expected to be worth $6.65 billion but was reduced after three companies dropped out. However, Australian women may only receive a small share of the funds, as most of the settlement will go to US women. Half of the claimants are from outside the US, and the disparity in settlement amounts is due to lower damage awards in other countries compared to the US.

Key Takeaways:

  • The settlement of $5.6 billion will be paid by US manufacturers, including Dow Corning Corporation, Bristol-Myers Squibb Co., and Baxter International Incorporated, who will cover at least 79% of the cost.
  • Three other companies, General Electric Company, Minnesota Mining and Manufacturing Company (3M), and McGhan Medical Corporation, dropped out of the deal, reducing the original proposed settlement to $5.6 billion.
  • Australian women are expected to receive only a small share of the settlement funds, as most will go to US women despite half the claimants being from outside the US.
  • The disparity in settlement amounts is due to lower damage awards in other countries compared to the US.
  • A hearing before Judge Sam Pointer will be held to ensure the settlement is deemed fair and reasonable, and to rule on whether non-US claimants are entitled to more than the 3% of settlement funds allocated to them.
  • Australian women who have won access to US courts may be eligible for a larger proportion of the settlement, but will still be treated as foreign claimants.
  • The foreign plaintiffs subcommittee will seek to convince Judge Pointer to reject the settlement in its present form due to its unfairness towards claimants outside the US.

Statistics:

  • $5.6 billion: the amount US manufacturers will pay to affected women.
  • 79%: the proportion of the settlement cost covered by Dow Corning Corporation, Bristol-Myers Squibb Co., and Baxter International Incorporated.
  • 3%: the proportion of the settlement funds allocated to non-US claimants.
  • $6.65 billion: the original proposed settlement amount before three companies dropped out.
  • 2800: the number of Australian claimants.
  • 50%: the proportion of claimants from outside the US.

Sources:

  • "US Manufacturers to Pay $5.6 Billion in Breast Implant Case" (date unknown) by Unknown Author, Reuters (no date mentioned)
  • Mr. Charles Wolfson, a Sydney-based American lawyer and member of the foreign plaintiffs subcommittee in the breast implant litigation
  • Ms. Paula Shelton, a solicitor from Slater & Gordon, one of two firms acting on behalf of Australian women in the US courts

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