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Old 10-01-2008, 08:47 PM   #1
scotty
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Paxil suit settled by Glaxo for $40 million

http://www.startribune.com/lifestyle...3aPc:_Yyc:aUUJ

Paxil suit settled by Glaxo for $40 million
Health plans that paid for kids and adolescents to get the antidepressant had sued the drugmaker.

By JOSEPHINE MARCOTTY, Star Tribune

Last update: October 1, 2008 - 9:37 PM

Paxil suit settled by Glaxo for $40 million
Health plans that paid for kids and adolescents to get the antidepressant had sued the drugmaker.

By JOSEPHINE MARCOTTY, Star Tribune

Last update: October 1, 2008 - 9:37 PM

In a settlement approved Tuesday in U.S. District Court in Minneapolis, British drugmaker GlaxoSmithKline agreed to pay $40 million to reimburse health plans that paid for children and adolescents to receive the antidepressant Paxil.

The agreement brings to a close the long-standing class-action litigation against Glaxo, which was sued for allegedly withholding negative information about the safety and efficacy of Paxil for teenagers and children. In 2007, Glaxo agreed to pay $63.9 million to consumers in another class-action settlement. In both cases Glaxo did not admit wrongdoing.

The settlement this week resolves the case on behalf of some 42,000 health plans across the country that paid for the drug, said Paul Dahlberg, an attorney with Meshbesher & Spence, one of nine law firms involved in the case. A third of the settlement will be paid to the law firms.

Although Paxil is not approved by the Food and Drug Administration (FDA) for use by children, doctors may prescribe it for them. Studies have shown that Paxil and other antidepressants in some instances lead to increased thoughts of suicide in adolescents. Last year the FDA ordered drugmakers to add a "black box" warning of the drug's risks after parents and other consumer advocates raised questions about the safety of antidepressants for those under age 18.

Under the settlement, GSK will pay insurers who paid for a Paxil prescription for use by a minor between January 1998 and December 2004. They may claim a refund of 40 percent of their actual costs of the drugs prescribed to children and adolescents diagnosed with a major depression, or 15 percent of the cost if the diagnosis was unknown.

If the settlement account is not exhausted, the unclaimed balance will be donated to nonprofits involved in mental health causes.

Josephine Marcotty • 612-673-7394
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Last edited by scotty : 10-01-2008 at 09:02 PM.
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Old 10-01-2008, 09:23 PM   #2
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Re: Paxil suit settled by Glaxo for $40 million

Always makes me happy to hear they had to pay out for what they have done... it brings me great satisfaction!!
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Old 10-01-2008, 09:34 PM   #3
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Re: Paxil suit settled by Glaxo for $40 million

So, does this mean that insurers will not cover an AD for an adolescent now?
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Old 10-01-2008, 10:02 PM   #4
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Re: Paxil suit settled by Glaxo for $40 million

This payout is to the insurers only? Chelsea was on it for about 3 months in maybe 99 or 2000. Even if it is to insurers only glad to see they are paying out something.

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Old 10-02-2008, 06:16 AM   #5
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Re: Paxil suit settled by Glaxo for $40 million

I'm happy to see that they have to pay something to somebody. Perhaps this might open the way to the consumers to claim damages.
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Old 10-02-2008, 08:40 AM   #6
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Re: Paxil suit settled by Glaxo for $40 million

Quote:
Originally Posted by Katesmom View Post
So, does this mean that insurers will not cover an AD for an adolescent now?
Hmmm... good point. I wonder if this case would trigger that outcome.
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Old 10-02-2008, 08:57 AM   #7
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Re: Paxil suit settled by Glaxo for $40 million

Quote:
Originally Posted by Katesmom View Post
So, does this mean that insurers will not cover an AD for an adolescent now?
That's very scary to think about when you consider what cold turkey withdrawal or switching meds would do to thousands (possibly millions) of teens.
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Old 10-02-2008, 01:41 PM   #8
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Re: Paxil suit settled by Glaxo for $40 million

This sounds to me as if the bank got paid for the criiminal taking their money and if there is any left over after all the banks costs, some may dribble to the victim...YUP SOUNDS LIKE OUR JUSTICE SYSTEM
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Old 10-03-2008, 06:35 AM   #9
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Re: Paxil suit settled by Glaxo for $40 million

$40 million dollars doesn't seem a lot when you see how much profit these bastards make every year!!
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Old 10-23-2008, 02:54 PM   #10
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Re: Paxil suit settled by Glaxo for $40 million

And the lawyers get 1/3...that just adds insult to injury if you ask me....which no one did....
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Old 10-23-2008, 03:45 PM   #11
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Re: Paxil suit settled by Glaxo for $40 million

Class actions normally don't equate to any serious money to individuals. Sometimes you walk away with a hundred dollars after filling out a couple hours worth of paperwork.....Usually the only ones who win are the lawyers (13 million!) and GSK no longer has to deal with this issue.
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