A federal court in San Francisco has granted preliminary approval to a proposed settlement with Pfizer Inc. ("Pfizer") about the marketing of the prescription drugs Bextra and Celebrex. The settlement in the case called In re Bextra and Celebrex Marketing, Sales Practices, and Product Liability Litigation, No. 05-CV-01669, MDL No. 1699, pending in the United States District Court for the Northern District of California, will provide a Settlement Fund of $89 million to benefit a class of consumers and insurance companies or other entities (also called Third-Party Payors) that paid for either medicine before July 29, 2005.
The lawsuit, which does not concern safety risk of either drug, claims that Pfizer falsely advertised Bextra and Celebrex as having greater benefits than less expensive pain medications, causing consumers and other entities to pay a greater price for Bextra and Celebrex than they would otherwise have paid for less expensive alternatives or no medications at all. The lawsuit also claims that the advertising was not consistent with the drugs' Food and Drug Administration approved labeling. Pfizer denies any wrongdoing and denies all of the claims in the lawsuit but is settling this lawsuit to avoid the cost and expense of further litigation.
Consumers who paid for Bextra and/or Celebrex on or before July 29, 2005 are included in the Proposed Settlement. Third-Party Payors that paid or reimbursed for all or a percentage of the cost of Bextra and/or Celebrex on or before July 29, 2005 can also make a recovery under the Proposed Settlement. Third-Party Payors include insurance companies, union health and welfare plans, and self-insured employers.
Consumers and Third-Party Payors that wish to remain in the Settlement and file a claim will be bound by the Court's orders and will give up the right to sue the defendants on their own. Claim forms must be postmarked by October 23, 2009.
The Court will hold a Final Approval Hearing on September 25, 2009 at 10 a.m. to consider whether the Proposed Settlement is fair, reasonable, and adequate and the motion for attorneys' fees and expenses.
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