Important note: Information in this article was accurate in 1996. The state of the art may have changed since the publication date.
The Associated Press - 14 August 1996
Herbert G. McCann, Associated Press Writer
The $640 million settlement offer from four major drug companies would also cover survivors of hemophiliacs who died of AIDS, as well as family members and others who have contracted HIV from a person with hemophilia.
The deal involves only products sold between 1979 and 1985 - before the companies say reliable AIDS-killing treatments became available.
Hemophiliac groups contend the companies purposely failed to protect them by refusing to treat the products with heat that would kill the virus, and by manufacturing the products from blood taken from people at high risk for AIDS, such as drug abusers.
In the decade since the contamination became known, more than 4,500 hemophiliacs have died from AIDS. And both sides estimate the number of people eligible for the settlement at 5,000 to 6,000.
Although some advocates for hemophiliacs contend the offer is inadequate, U.S. District Judge John Grady said it "has sufficient earmarks of fairness."
David Shrager, lead attorney for the hemophiliacs, said the settlement is probably the only way many of them can get compensation.
Most who have sued the drug companies in the past have lost their cases. Those who have won later had their victories overturned on appeal. Individual suits by about 800 people remain pending.
"The legal obstacles have been great," Shrager said. "There have been problems of product identification and there is the statute of limitations. This is an offer that deserves consideration."
The judge set a Nov. 25 hearing to hear from those affected by the settlement.
The four drug companies involved in the case are Germany's Bayer AG; Baxter International Inc., of Deerfield, Ill.; the Armour Pharmaceuticals division of French-owned Rhone-Poulenc Rorer; and Alpha Therapeutic Corp., a division of Japan's Green Cross Corp.
"This is an effort to resolve litigation and to improve and enhance the relationship with our customers," said Phil Beck, the attorney for Alpha Therapeutic Corp. "The settlement is fair and reasonable and in the best interests of the companies and the plaintiffs."
Terms of the settlement say $600 million will be distributed to victims, $40 million will pay for expenses and lawyers fees in the decade-long litigation.
Notices will be sent next week to those affected by the settlement. They will have until Oct. 15 to notify the court whether they will accept the offer. If they reject it, they will have the option to sue the drug companies.
The drug companies admit no guilt with the agreement and they have the option of dropping the offer if too many people reject it, Beck said.
Some advocates for hemophiliacs have complained that the same companies contributed $240,000 per person as part of a similar settlement in Japan. The companies say the legal system is more stringent in that country, necessitating the higher payment.
The advocates also contend that the number of AIDS-infected hemophiliacs in the United States probably is closer to 10,000. If so, each person would get less than $100,000.
960814
AP960804
Copyright © 1996 - Associated Press. Reproduction of this article (other than one copy for personal reference) must be cleared through the AP Permissions Desk.
AEGiS is a 501(c)3, not-for-profit, tax-exempt, educational corporation. AEGiS is made possible through unrestricted funding from Broadway Cares/Equity Fights AIDS, Elton John AIDS Foundation, National Library of Medicine, Pacific Life Foundation, and donations from users like you.
Always watch for outdated information. This article first appeared in 1996. This material is designed to support, not replace, the relationship that exists between you and your doctor.
AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.
Copyright ©1980, 1996. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .