When plaintiff attorneys were trying to get a Madison County judge to approve a settlement in a class-action lawsuit against the maker of Paxil, they touted that the company would have to pay up to $63.8 million.
How much did consumers actually get? The parties aren’t saying — and they’ll never have to.
According to the settlement, any money that didn’t get claimed by consumers goes back to GlaxoSmithKline, the maker of Paxil, which is used to treat depression. And the attorneys for both sides, as well as the company that was hired to handle consumers’ claims, are not required [to] give the court a report on how many people made claims or how much money was actually paid to them.
But one payout is certain: The plaintiff attorneys got $16.5 million.
So-called reversionary settlements, where unclaimed money goes back to the defendant, give companies a particular incentive to collaborate in crafting payout schemes that end up reaching few consumers. According to the article, settlements of that sort are especially common in the famous class-action jurisdiction of Madison County, Ill. (Brian Brueggemann, Belleville (Ill.) News-Democrat, Oct. 21).
2 Comments
It’s even more egregious than you think, Walter. Paxil is the drug that is meant to treat social anxiety disorder, i.e., pathological shyness. In other words, this is a class of plaintiffs who, more than anyone else, would be unlikely to complain.
Wow! that’s 55 years worth of time, 24 hours a day 7 days a week. Gave me a headache to think about trying to figure out how many people that would be over the course of this lawsuit. I think I can spell “excessive” not sure I can say it without fear of retribution!