MADISON, N.J., May 24 /PRNewswire-FirstCall/ -- Wyeth today announced that the Seventh Amendment to the Nationwide Diet Drug Settlement has received final judicial approval.
“Final approval of the Seventh Amendment is an important milestone in our broader effort to resolve the diet drug issue,” says Lawrence V. Stein, Senior Vice President and General Counsel of Wyeth.
Executed in May 2004, the Seventh Amendment to the Settlement Agreement will create a new claims processing structure and payment schedule for Matrix Level I or II claims, the least serious but most numerous claims in the Settlement.
The Seventh Amendment includes the following key terms: - The Amendment creates a new Supplemental Fund to be administered by a Fund Administrator appointed by the District Court. Wyeth will ultimately deposit a total of $1.275 billion, net of certain credits, into the Supplemental Fund. Under the terms of the Seventh Amendment, Wyeth will deposit $400 million into the Supplemental Fund by May 23. This brings its total contribution to date to $425 million. The remainder of the $1.275 billion will be deposited into the Fund as needed by the Fund Administrator. - All participating matrix Level I and II claimants who qualify under the Seventh Amendment, who pass the Supplemental Fund’s medical review and who otherwise satisfy the requirements of the Settlement, will receive a pro rata share of the $1.275 billion Supplemental Fund, after deduction of certain expenses and other amounts from the Supplemental Fund. The pro rata amount will vary depending upon the number of claimants who pass medical review, the nature of their claims, their age and other factors. A Seventh Amendment participant who does not qualify after medical review will be paid $2,000 from the Supplemental Fund. - Participating class members who might in the future have been eligible to file Level I and Level II matrix claims will receive a $2,000 payment from the Settlement Trust; such payments will be funded by the Company apart from its other funding obligations under the national settlement. - If the participants in the Seventh Amendment have heart valve surgery or certain other more serious medical conditions by December 31, 2011, they will remain eligible to submit claims to the existing Settlement Trust and be paid the current matrix amounts if they qualify for such payments under terms modified by the Seventh Amendment. In the event the existing Settlement Trust is unable to pay those claims, Wyeth will guarantee payment. - All class members who participate in the Seventh Amendment give up any further opt-out rights. The Seventh Amendment also precludes any lawsuits by the Trust or the Company to recover any amounts previously paid to class members by the Trust, and terminates the Claims Integrity Program as to all claimants who participate in the Seventh Amendment.
Wyeth is one of the world’s largest research-driven pharmaceutical and health care products companies. It is a leader in the discovery, development, manufacturing, and marketing of pharmaceuticals, vaccines, biotechnology products and nonprescription medicines that improve the quality of life for people worldwide. The Company’s major divisions include Wyeth Pharmaceuticals, Wyeth Consumer Healthcare and Fort Dodge Animal Health.
Wyeth
CONTACT: Media Contact - Douglas Petkus, +1-973-660-5218, or ChristopherGarland, +1-484-865-6323, or Investor Contact - Justin Victoria,+1-973-660-5340, all of Wyeth
Web site: http://www.wyeth.com/
