AEGiS-AP: AIDS Victims Accept Settlement Associated PressImportant note: Information in this article was accurate in 1996. The state of the art may have changed since the publication date.
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AIDS Victims Accept Settlement

The Associated Press - Monday, October 14, 1996.
Steve Sakson, AP Business Writer


NEW YORK (AP) -- Thousands of hemophiliacs who were infected with the AIDS virus by tainted blood clotting products have accepted a settlement offer from manufacturers that would give each $100,000 in compensation.

Nonetheless, as Tuesday night's deadline approached for victims to file forms expressing their opinion on the deal, it was unclear whether enough would say yes to ensure its completion.

The four manufacturers who made the offer this May can back out if too many victims reject it and elect to pursue individual lawsuits. The companies won't say how many rejections they will tolerate.

By Monday, roughly 3,000 victims had responded to the offer and nearly 95 percent had accepted it, a person familiar with the tabulations said.

The acceptance rate was much lower for victims who have already filed lawsuits against the companies. Plaintiffs in just over 50 percent of the 800 pending lawsuits said yes, the person said.

Hundreds of responses were expected at the last minute. Roughly 6,000 to 10,000 people or their families are affected.

All responses to the settlement offer must be postmarked by Tuesday and sent to P.O. Box 30189, Philadelphia, Pa., 19103-0189.

There are three toll-free phone numbers for information: 800-488-2688; 800-568-5868; 800-836-9376.

The settlement offer was made by Bayer AG on behalf of its Cutter and Miles laboratories divisions; Baxter International Inc., and its Travenol and Hyland divisions; Rhone-Poulenc Rorer Inc., and its Armour Pharmaceutical division; and Alpha Therapeutic Corp., a U.S. division of Green Cross of Japan.

Collectively these companies sell the bulk of the "clotting factors" in the United States -- chemicals that hemophiliacs must inject regularly to ensure their blood will clot.

Hemophiliacs contend that the companies put them at risk for AIDS in the early 1980s by failing to sterilize donated blood used to make the factors.

The hemophiliacs also say they have documents proving that the companies, to save money, intentionally recruited donors from groups thought to be at high risk for AIDS including gay men, illegal intravenous drug users and prison inmates.

Nearly 5,000 AIDS-infected hemophiliacs have died. Since hemophilia is common among siblings and is usually present in males, some families have been decimated by the deaths of three or more brothers. Deaths are now occurring at a rate of two per day, activists say.

The companies insist they had no way of knowing how AIDS was transmitted at the time and so they are not at fault. All donors were screened for diseases and those thought at high risk for AIDS were excluded as early as 1982, the companies say.

Tragically, by that time, most of the infections had already occurred.

While refusing to admit wrongdoing, the companies proposed a $640 million settlement of all claims, hoping to put a decade of litigation behind them.

Hemophiliac activists grudgingly endorsed the deal, calling it inadequate, but acknowledging that many victims would want it.

"Some people are in serious financial trouble and they need money. Other people have a good lawsuit, but they're dying and they want money now, and the industry knows this," said activist Corey Dubin, a hemophiliac and AIDS patient from Goleta, Calif., who leads the activist group The Committee of 10,000.

Dubin wouldn't speculate Monday on whether the deal will be completed.

So far, the court system has sided with the defendants. Many state laws prohibit product liability suits involving blood products, while the statute of limitations for filing has run out in others.

While a handful of cases have gone to trial, the defendants have always prevailed.

"We did everything we believed we could to prevent infections by anything, but nobody knew what HIV was," at the time, said Guy Esnouf, spokesman for Rhone-Poulenc Rorer, a French-owned drugmaker.

Plaintiffs say that tide may turn as more incriminating documents have turned up describing the questionable donors used for blood products.


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