The punitive damages were part of a 2004 decision of the California Court of Appeal which upheld a 2002 Los Angeles County Superior Court jury verdict awarding approximately $300 million in compensatory and $200 million in punitive damages to City of Hope National Medical Center (COH).
Genentech has said, as a result of the decision, it expects to recognize a favorable litigation settlement of approximately $315 million in the first quarter of 2008, reversing $200 million in punitive damages originally awarded and the accrued interest thereon totaling approximately $115 million recorded since 2002.
Sean Johnston, senior vice president and general counsel of Genentech, said: Genentech has maintained throughout this process that we have lived up to the letter and spirit of the contract. We are pleased with the Court’s finding that punitive damages are not applicable in this setting and we would like to thank the many parties that filed supporting briefs in this case.