Healthy Skepticism Library item: 9841

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Publication type: media release

Judge Approves Final Terms of Improved National Pediatric Paxil Class Action Settlement- Consumers Get a Better Deal
Baum Hedlund 2007 Apr 26
http://www.baumhedlundlaw.com/Paxil/paxil-pediatric-class-action.htm

Full text:

Madison County, Illinois April 26, 2007 — Madison County Associate Judge Ralph Mendelsohn today approved and amended the national pediatric Paxil class settlement which will provide more payment to people who paid for Paxil to use by a minor and divide the fees more fairly among the lawyers who substantially worked on the case.

Since GlaxoSmithKline’s (GSK’s) original $63.8 million settlement with Korein Tillery and Swedlow and Associates on October 6, 2006, lawyers who did a large amount of work on similar class actions in MN and CA and their clients, objected to the settlement as being unfair to the consumers in the other classes and to their lawyers, whose litigation efforts improved amendments to the terms of the settlement and greatly contributed to the original settlement.

The firms who filed the objections to the original settlement on behalf of client, Colin Connare (Baum Hedlund of Los Angeles, Pendley, Baudin & Coffin of Plaquemine, LA, Strange & Carpenter of Los Angeles and Larson King of St. Paul, Minnesota) argued that the settlement proposal had a loophole that prevented adequate payment to a considerable number of consumers. One of the problems with the original settlement was the perceived problem of reimbursement to consumers who could not provide proper documentation. They were only to receive $15, but under the new approved terms consumers who cannot provide proof will receive $100. These claims were also capped at $300,000 under the old terms, but the objectioning team of lawyers today were able to negotiate the removal of that cap in addition to the increased payment. This uncapping of the GSK settlement fund makes available more payment to a larger portion of potential claimants thus making the settlement more fair and GSK’s overall payout more adequate.

Three of the most important terms of the settlement:

1. The case was about documents showing that GSK had determined that Paxil failed to out- perform placebo for depressed minors yet GSK received money for selling Paxil to depressed minors.

2. The team of lawyers who negotiated the new terms worked in conjunction with watch dog group Public Citizen which was also making similar objections to theirs. Public Citizen was working on behalf of objectioner Bowman and PAL (Prescription Access Litigation).

3. The new claim form for undocumented claimants to receive $100 will be posted on the website for the Paxil Pediatric Settlement at www.paxilpediatricsettlement.com, www.paxilprogress.org and www.baumhedlundlaw.com.

“The most important objective in improving the settlement for all potential claimants was accomplished through the objections we filed on behalf of our client. Our litigation efforts substantially contributed to the original settlement proposal and the improved amendments to the final settlement,” stated Michael Baum, senior partner at Baum Hedlund.

Robin McCall
Director of Media Relations
Baum Hedlund
RMcCall@BaumHedlundLaw.com