Thursday, November 02, 2006

GSK - Paxil: a $63.8 million class action settlement

GlaxoSmithKline PLC has agreed to pay $63.8 million to settle a lawsuit's claims that it promoted its antidepressant drug Paxil for use by children and adolescents while withholding negative information about the medication's safety and effectiveness.

As part of the settlement, GlaxoSmithKline denies the lawsuit's claims, including that consumers paid too much for the drugs, but the world's second-largest pharmaceutical company wants to resolve the matter to avoid further litigation costs.

Actual payments to consumers will depend on the amount of claims. If there is not enough money to pay all the claims, consumers will get only a portion of the amount they otherwise could have gotten.

Fees for the plaintiffs' attorneys will be deducted from the settlement fund, with the remaining money available for payments to consumers. As part of the deal, attorneys for the plaintiffs in the class-action case could get about $16.6 million.

Madison County Associate Judge Ralph Mendelsohn approved the settlement on Oct. 6 and unsealed it Oct. 27. He will hold a hearing March 9 on whether the settlement is fair and whether the plaintiffs' attorneys are entitled to the fee they request.

Information about the proposed settlement, http://www.paxilpediatricsettlement.com/

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