Fen-Phen

On September 23, 1997, The Law Group, Ltd. filed one of the first nationwide class action suits on behalf of Plaintiffs who used Fenfluramine (Pondimin) or Dexfenfluramine (Redux) in combination with Phentermine (the combination commonly referred to as Fen-Phen).

The use of Pondimin and/or Redux, regardless of whether it was given with phentermine, has been associated with causing problems with two of the four heart valves. The heart valves affected are the mitral and aortic valves. The condition, called valvular regurgitation, at its basic level means that heart valves are not closing properly and are allowing blood to flow through the heart in the wrong direction. It is detected and evaluated by a procedure called an echocardiogram. Primary pulmonary hypertension, also known as PPH is another serious, but fortunately rare, adverse effect of using Pondimin or Redux. It is possible for heart valve problems and PPH to cause death.

All Fen-Phen cases filed in federal court were consolidated into a Multidistrict Litigation. The Judicial Panel on Multidistrict Litigation transferred all Fen-Phen cases to the Eastern District of Pennsylvania on December 10, 1997. The Plaintiffs' Management Committee (PMC) decided not to seek certification of personal injury cases. The Law Group, Ltd. subsequently filed the only motion seeking a nationwide personal injury class. The Firm served as co-chair of the Non-PMC Class Action Coordination Committee. A nationwide Class Action Settlement received approval on August 28, 2000. Under the Settlement, American Home Products Corporation agreed to provide over 4 billion dollars for benefits to those who took Pondimin or Redux. The benefits provided under the Settlement Agreement were determined by several factors, such as length of diet drug use, severity of condition, and age. The benefits varied from claimant to claimant and included some of the following:

- An echocardiogram and interpretive physician visit;

- Additional medical services or cash for class members who had a level of heart valve regurgitation known as FDA positive by the end of the screening period;

- Payment of cash compensation benefits for cases of serious heart valve disease;

- Prescription cost refunds;

- Reimbursement of all or part of the cost of a privately obtained echocardiogram; and

- Medical research and registry which will track the condition of diet drug recipients and perform research.

A Settlement Trust was created to pay out the settlement benefits to claimants. However, class members had an option to opt-out of the settlement and pursue individual lawsuits. THE LAW GROUP, LTD. chose to opt-out 83 claimants and successfully settled their claims.

Currently, there are numerous independent lawsuits pending around the country. There are also many class members awaiting compensation under the Settlement Trust. However, the Settlement Trust has fallen behind in reviewing claims and has claimed a shortage of funds. On August 26, 2004 the Court preliminarily approved an Amendment Seven to the Settlement Agreement. Amendment Seven allows for a potential reduction in the benefit amounts the Trust is to provide in payment to certain class members, particularly those who have marginal injuries and consume large resources that should otherwise be available to the significantly injured. It also requires members to relinquish their rights to opt-out of the Settlement. However, it will also mandate an additional $1.275 billion dollars to be added to the fund for payment to severely injured plaintiffs. Furthermore, the review process will be revitalized and the amounts the Trust is required to pay out will be expedited.