History of the Settlement


Diet drugs withdrawn from market
On September 15, 1997, American Home Products Corporation ("AHP") withdrew the diet drugs Pondimin® and Redux from the market. These drugs had been commonly prescribed by physicians alone and/or in combination with another prescription drug (specifically, Phentermine) for weight loss. The combination of drugs was popularly known as "Fen-Phen."  Note: AHP changed its name to Wyeth on March 11, 2002.  The name change does not affect the implementation of the Nationwide Class Action Settlement Agreement with American Home Products Corporation (the "Settlement Agreement") or the AHP Settlement Trust (the "Trust") described below.

Lawsuits and class actions filed
Prior to 1997, and continuing to the present, individuals who had ingested Pondimin® and/or Redux, alone, or in combination with Phentermine, filed individual lawsuits and class actions in federal and state courts against AHP and others, alleging that the use of the diet drugs has or may have adversely affected their health. The alleged injuries include: heart valve regurgitation, valvular heart disease, or an increased risk of developing these conditions. The lawsuits seek remedies including monetary damages, medical monitoring and screening.

Cases transferred to federal district court
On December 10, 1997, the Judicial Panel on Multidistrict Litigation transferred all federal diet drug cases to the United States District Court for the Eastern District of Pennsylvania ("Trial Court") for coordinated or consolidated pretrial proceedings before the Honorable Louis C. Bechtle, Chief Judge Emeritus.  Note: Upon the retirement of Judge Bechtle, the matter was reassigned to Judge Harvey Bartle III on June 29, 2001.

Negotiations begun
Subsequently, counsel for plaintiffs and AHP began negotiating a nationwide settlement to settle claims resulting from the ingestion of Pondimin® and/or Redux. Counsel for plaintiffs and AHP prepared and presented to the Court a proposed Settlement Agreement and related documents, seeking certification of the proposed settlement class.

Preliminary approval
On November 23, 1999, the Trial Court, in Pretrial Order No. 997, preliminarily approved the settlement class.  (Click here) to view Pretrial Order No. 997.  The Court appointed Class Counsel to represent the class as a whole, and appointed Gregory P. Miller, Esquire and the Honorable C. Judson Hamlin as Interim Claims Administrators.  The job of the Interim Claims Administrators was, in cooperation with counsel for the parties, to develop the resources and mechanisms for complying with the provisions of the Settlement Agreement.

Hearings held
On May 2, 2000, the Trial Court held a hearing to determine whether the proposed Settlement Agreement was fair, adequate, and reasonable.  Another hearing was held on August 10, 2000, to hear evidence on the fairness of changes contained in the 4th Amendment to the Settlement Agreement.

Approval of settlement
On August 28, 2000, Judge Bechtle issued Memorandum and Pretrial Order No. 1415 approving the Settlement Agreement and the four amendments as incorporated in the Settlement Agreement.  (Click here) to view Memorandum and Pretrial Order No. 1415.

AHP Settlement Trust established
The AHP Settlement Trust was established on September 1, 2000. The Trust is a special purpose entity established solely to administer the provisions of the Settlement Agreement, and to process the claims of Class Members who file claims with the Trust in connection with their use of Pondimin® and/or Redux.  The Trust has assumed responsibility for activities previously conducted by the Interim Claims Administrators.

Appeals
Trial Court Approval of the Settlement Agreement was appealed to a higher court, specifically the United States Court of Appeals for the Third Circuit.  On August 15, 2001, a three-judge panel of the Third Circuit issued an order affirming the ruling of the Trial Court.  However, the entity that filed the appeal requested all the judges of the Third Circuit to rehear the appeal.  On October 3, 2001, that request was denied.  The time to seek review of the ruling of the Third Circuit by the Supreme Court of the United States expired on January 2, 2002.

Status of Final Judicial Approval
Since no review of the Third Circuit ruling was sought in the Supreme Court of the United States, Final Judicial Approval occurred as of January 3, 2002.  The occurrence of Final Judicial Approval triggered certain deadlines, which are discussed below.

Date 1
One of the deadlines under the Settlement Agreement, known as "Date 1," occurred on August 1, 2002.  This means that those benefits whose filing deadline was August 1, 2002, are no longer available.  The Trust can provide those benefits only to eligible Claimants who mailed to the Trust the appropriate completed and signed Form(s), requesting those benefits, postmarked no later than August 1, 2002.  To determine the benefits whose filing deadline was August 1, 2002, (click here).

Motions and Orders Subsequent to Date 1
Various Motions were filed with the Trial Court regarding the Settlement Agreement.  These Motions and Orders are listed below and are available for review online via the links as indicated:

  • Joint Motion to Approve and Implement the Fifth Amendment to the Nationwide Class Action Settlement with AHP, filed 9/23/02 (click here).  (The Court approved a Fifth Amendment on 12/10/02, that is slightly different from the one proposed with the motion filed on 9/23/02.  (To access the Revised Fifth Amendment as approved (click here)).
  • Joint Motion for an Emergency Stay of Processing Matrix Claims to Tentative and/or Final Determinations under the Nationwide Class Action Settlement Agreement with AHP, filed 9/24/02 (click here). [Large file size: 10MB]
  • Motion by the AHP Settlement Trust for Emergency Suspension of Certain Fund A Processing Deadlines, filed 9/25/02 (click here).  To access Pretrial Order No. 2663, dated December 3, 2002, granting the motion, (click here).
  • Pretrial Order No. 2662, dated November 26, 2002, which requires the Trust to audit ever claim for Matrix Compensation Benefits that had not been paid by that date (click here).

 
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