Date: 05-26-2007

Case Style: Teri Hoormann, et al. v. GlaxoSmithKline Beecham Corp.

Case Number: 04-L-715

Judge: Ralph J. Mendelsohn

Court: Circuit Court, Madison County, Illinois

Plaintiff's Attorney:

Stephen Tillery and Aaron Zigler of Korein Tillery, St. Louis, Missouri and Stephen A. Swedlow of Swedlow & Associates, LLC, Chicago, Illinois

Defendant's Attorney:

Dwight Davis of King & Spalding LLP, Atlanta, New York

Description:

The plaintiffs in this class action individually and on behalf of other purchasers of Paxil® manufactured and sold by GlaxoSmithKline Beecham, PLC claimed that although GSK had actual knowledge that Paxil would not work and would expose children and adolescents to dangerous side effects, it promoted Paxil® for prescription to children and adolescents while withholding and concealing negative information concerning its safety and effectiveness. Paxil® is a drug that is FDA approved used to treat depression and anxiety disorders in adults. It has not been approved for use by children. It belongs to the family of drugs called selective serotonin reuptake inhibitors (SSRI). Also called paroxetine hydrochloride.

GlaxoSmithKline denied claims it promoted the drug to children while withholding information about negative side effects, including increased suicidal behavior. Defendant admitted no wrongdoing.

Outcome: Settled for an estimated maximum cost to Defendant of $63.8 million. Both sides agreed to a proposed settlement to avoid the cost and risk of a trial. The proposed settlement does not mean GlaxoSmithKline did anything wrong or that it violated any laws. The Class Representatives and the lawyers representing them think the proposed settlement is best for all Class Members. A $63.8 million fund will be established. Attorneys’ fees, expenses, payments to Class Representatives and the costs of providing notice and administering the proposed settlement will be deducted from the fund. The balance will be used to pay consumers who submit valid claim forms in cash for the total amount they paid out of pocket, for Paxil® or Paxil CR™. The maximum amount you can receive from the proposed settlement is 100% of the amount you paid for Paxil® or Paxil CR™. Claimants will be paid $100 for Paxil® purchased by them. If, however, the total claims exceed the amount in the fund claimants could get less than $100. Anyone with a personal injury claim, including the parents of teenagers who took their own lives while taking Paxil, still can sue GlaxoSmithKline, as can insurers and governmental agencies who actually paid the bulk of the money. spacer

Plaintiff's Experts: Unknown

Defendant's Experts: Unknown

Comments: The Court awarded attorneys fees and cost in the amount of 26% of the settlement fund. The court also awarded a payment of $5,000 for each of the class representatives. Go to: How to file a Paxil claim at http://www.paxilpediatricsettlementc.om. Claims must be received by August 31, 2007.

Editor's Note: It is highly unlikely that Defendant will pay out all of the settlement fund despite publication of notice and other efforts to inform the parents of children who were given Paxil.