According to the filed documents, Wyeth will negotiate with individual law firms to resolve their cases using one of two models: either an expedited pay option which requires less documentation and is designed to result in quicker payments, or a methodology using a settlement grid which characterizes medical conditions by age and nature of injury, and allows for payments accordingly.
“The two settlement vehicles which have been negotiated represent a fair resolution to what has been very contentious litigation. Law firms representing thousands of claimants have already indicated a desire to participate and we expect many more will make this election by the February 15 deadline,” said Wayne Spivey, counsel for several thousand plaintiffs in the suit.
Wyeth recently committed to contributing an additional $1.275 billion to the original national diet drug settlement separately funding a payment vehicle referred to as the seventh amendment. It is widely expected that Judge Bartle will approve the seventh amendment that, together with the initiation of the settlement process, may be a significant step in bringing the diet drug litigation to a conclusion.
The litigation concerns allegations that Wyeth diet drugs, Redux and Pondimin, caused heart valve damage. The drugs were withdrawn from the market in September 1997.