Settlement Is Still At Issue In Paxil Lawsuit
A fairness hearing for a proposed $63.8 million settlement for a Madison County class action suit against the makers of Paxil and Paxil CR was continued after several closed discussions between the lawyers took place Wednesday.Associate Judge Ralph Mendelsohn postponed the hearing until 9 a.m. today. Three objections to the settlement remain to be heard before Mendelsohn decides on its fairness.
The lawsuit claimed GlaxoSmithKline promoted the drugs — normally used as anti-depressent medications — for prescription to children and adolescents while withholding negative information about the drugs’ safety and effectiveness. Members of the class include all U.S. residents who bought the drugs for their children.
Consumers who have records of their purchases can get full refunds for their expenditures. Consumers who do not have records can get $15.
Prior to the hearing, Mendelsohn denied motions to intervene submitted by attorneys for a consumer group, Prescription Access Litigation Project, and a few Paxil buyers. They wanted to be able to get information about whether the settlement is adequate for Paxil buyers.
Belleville attorney Tom Keefe also tried to intervene on behalf of four out-of-town law firms that were pursuing other class-action lawsuits involving Paxil.
Through the proposed settlement, the plaintiff attorneys, Stephen Tillery of Korein Tillery LLC in Fairview Heights and Stephen Swedlow of Swedlow & Associates in Chicago, would be entitled to 26 percent, or $16.6 million, of the $63.8 million settlement fund. Of the remainder, any money that is not paid out to consumers would be kept by GlaxoSmithKline.
Keefe argued the distribution of funds only to plaintiff attorneys in the Madison County case is unfair, because of the work that the out-of-town law firms have done for their clients.
“What we’re talking about here is an issue of fairness,” Keefe said.
Tillery argued the out-of-town lawyers shouldn’t get a portion of the attorney fees while continuing to represent clients in their own Paxil cases.
Mendelsohn said it would open a “Pandora’s Box” for any attorney who looks into Paxil to also feel entitled to a portion of the attorney fees in the Madison County class action.