Criticism over a proposed $63.9 million class-action settlement is being called into question regarding an agreement worked out between drug maker GlaxoSmithKline PLC and a St. Louis law firm.Allegations range from closed-door deals to a $5 million demand to end a competing lawsuit over purchases for use by minors of GlaxoSmithKline's antidepressant drug Paxil.
The settlement would create a fund to repay out-of-pocket costs for purchases of Paxil that was for use by minors. The 2004 lawsuit alleges the drug company failed to divulge negative information about the drug. The Food and Drug Administration has since issued warnings against Paxil for children after some studies found the drug increased suicidal tendencies while having questionable effects on depression.
The drug company continues to deny the claims, but the settlement would sidestep a potentially protracted legal battle.
Under the proposed terms, the law firm would share up to $16.8 million in fees with the Chicago firm of Swedlow & Associates. The remainder - minus the expense of publicizing the settlement - would be available to reimburse those who bought Paxil for a minor.
At the drug maker's request, that case was moved to federal court last month where a judge will decide whether the East St. Louis court has jurisdiction. (http://www.stltoday.com/stltoday/news/stories.nsf/metroeast/story/D0699455342A2B73862572580013D407?OpenDocument )
