American Home Products settles fen-phen lawsuits for $3.75 billion

American Home Products has agreed to pay up to $3.75 billion to settlethe numerous lawsuits it has faced in the USA regarding its diet drugs Pondimin (fenfluramine) and Redux (dexfenfluramine; Marketletters passim), in what is believed to be the largest legal settlement ever against a pharmaceutical company. The proposed deal is open to all Redux or Pondimin users in the USA, regardless of whether they have lawsuits pending, and AHP has issued a lengthy summary of what the settlement entails, including a refund program for the cost of the drugs, medical screening, additional medical services or cash payments and substantial compensation in the event of serious heart valve problems.

Settlement "fair and equitable" - AHP

"This settlement provides fair and equitable terms for both diet drug claimants and AHP," said company chief executive John Stafford, adding that the settlement of the cases was in everybody's best interest. He argued that the agreement is a "sound way to resolve the claims....and represents a prudent course for our company," as it offers peace of mind to those who used the drugs and allows AHP to "move beyond the uncertainty and distractions of litigation."