Simonet Paxil CRŽ Settlement
Settlement Information Website

BASIC INFORMATION

1. What is the lawsuit about?(top)

Class Representative Plaintiffs have reached a Settlement with Defendant SmithKline Beecham Corporation, d/b/a GlaxoSmithKline ("GSK"), in a class action lawsuit pending in the U.S. District Court for the District of Puerto Rico.

The lawsuit involves the drug Paxil CRŽ purchased or paid for (in whole or in part) between April 1, 2002 and March 4, 2005. Paxil CRŽ is manufactured and marketed by Defendant GSK. Plaintiffs allege that Paxil CRŽ tablets were defective in that some of the tablets were split during the above time period. GSK denies these claims and any liability.

The Settlement has been approved therefore, 60% of the Settlement Amount of $28 million (that is, $16.8 million) will be allocated to resolve consumer claims. After deducting a portion of the attorneys' fees and expenses, payments to named Consumer Class representatives and 60% of the costs of administering the settlement, the remaining balance of this $16.8 million will be available if needed to pay claims made by consumer class members who purchased or paid for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005.

2. What does GSK say about the lawsuit?(top)

GSK denies all of these claims and any liability. GSK has many defenses to these claims, and has entered into the settlement to avoid the further expense of this lawsuit. If the case is not settled, or if you exclude yourself from the settlement and pursue your own claim, GSK will oppose any claim.

3. Why is this a class action?(top)

In a class action lawsuit, plaintiff "class representatives" sue on behalf of those who have similar claims. These people together are a "class" or "class members." A court must determine if it will allow a lawsuit to proceed as a class action. If the court decides to "certify" the case as a class action, a trial of the claims then decides the lawsuit for everyone in the class, or the Parties may settle without a trial. In this case, the parties agreed that the Court may conditionally certify the case as a class action, for purposes of the settlement.

The Parties in this case have agreed to a Settlement that includes a class of natural persons in the United States and its territories who purchased or paid for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005 ("Consumer Class"), and the Court has preliminarily approved this settlement.

You could be a member of the Consumer Class.

4. Why is there a settlement?(top)

A settlement is the resulting agreement between a plaintiff and defendant following extended negotiation. Settlements end litigation but are not a result of the court ruling in favor of either the plaintiff or defendant. The settlement allows both parties to (a) avoid the cost and risk of a trial, and (b) establish a just, fair and final resolution that is best for all involved.

The Class representatives and their attorneys make the determination that the settlement is the best result for all Class members. The Court then reviews the terms of the settlement and holds a hearing on the fairness and adequacy of the settlement. If the Court approves the settlement, then the payments described herein will be made and the defendants are released from any liability based upon the alleged behavior that is the basis of the lawsuit.

5. How do I know if I am included in the settlement?(top)

The Consumer Class consists of all natural persons in the United States and its territories who purchased or paid for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005.

If you are a member of the Consumer Class, you will be included in the settlement unless you exclude yourself as described in Question 10.

Excluded from the Consumer Class are (1) Defendants, their officers, directors, management, employees, subsidiaries, and affiliates; (2) any judge conducting any proceedings in the Actions and his parents, spouses, and children as well as any other family member residing in the judge's household; (3) Class Counsel and Defendants' Counsel and their employees, and the parents, spouses and children as well as any other family member residing in the Class Counsel's or Defendants' Counsel's household or their employees' households.

BENEFITS OF THE SETTLEMENT – WHAT YOU GET

6. What does the settlement provide?(top)

GSK has entered into a Settlement with the Plaintiffs and has agreed to pay up to $28 million to settle the claims set forth in Plaintiffs' lawsuit as follows:

The settlement amount will be allocated between the Third-Party Payor Class and the Consumer Class. A total of $11.2 million, which is 40% of the $28 million, will be allocated to settle the Third-Party Payor Class Claims. A maximum of $16.8 million, which is 60% of $28 million, will be allocated to settle the Consumer Class Claims.

After the Consumer Class' share of attorneys' fees and expenses, payments to named Consumer Class representatives and 60% of the costs of administering the settlement are deducted from the $16.8 million, up to the balance will be distributed to Consumer Class members who qualify and submit a claim as described below.

After entry of the Order and Final Judgment in the Action and after the time to submit Consumer Class Claims has ended and all claims have been subject to validation by the Claims Administrator, the Claims Administrator shall calculate the amount of each validated Consumer Class Member's claim as follows:

  • 1.   Each valid Tier One Consumer Claim shall be valued at $50.00 (fifty dollars and no cents), and
  • 2.   Each valid Tier Two Consumer Claim shall be valued at $50.00 (fifty dollars and no cents), plus $10.00 for every valid claim for a Split Paxil CRŽ Tablet in excess of five, up to a maximum claim value of $150.00.

If the total of (a) all validated Consumer Class Claims, plus (b) all attorneys' fees and expenses awarded for litigation of the Consumer Class Claims, plus (c) 60% of all notice costs, claims administration fees, taxes, and other administrative costs associated with the settlement, plus (d) any incentive payment awarded to the named Consumer Class Plaintiffs is less than the Consumer Class Settlement Amount of $16.8 million, then each valid Consumer Class Claim shall be paid at its full claim value, as set forth immediately above. If the total of the items enumerated above is greater than the Consumer Class Settlement Amount, then each Consumer Class Claim shall be paid on a pro rata basis, based on the funds remaining in the Consumer Class Escrow Account after deposit by GSK of the amount required by the Settlement Agreement and the payment of items (b) through (d) enumerated above.

7. How do I file a claim?(top)

The official court-ordered deadline for filing a claim has passed. Claims needed to be postmarked by August 10, 2009.

The settlement provides for two types of Consumer Class Claims, as follows:

A "Tier One Consumer Claim," which shall be a claim made by a Consumer Class Member who attests that he or she paid for (in whole or in part) and received (during the period between April 1, 2002 and March 4, 2005) at least one but not more than five Paxil CRŽ tablets which were defective in that they were split before they were removed from the container in which they were purchased ("Split Paxil CRŽ Tablets"). A Consumer Class Member submitting a Tier One Consumer Claim shall be entitled to payment, in an amount for Tier One Consumer Claims set forth above, if he or she provides, as part of his or her claim, proof (satisfactory to the Claims Administrator) in the form of a truthful written declaration that attests, under penalty of perjury, that he or she paid for (in whole or in part) and received between one and five Split Paxil CRŽ Tablets during the period between April 1, 2002 and March 4, 2005. Each individual Consumer Class Member may submit only one Tier One Consumer Claim, and may not submit a Tier Two Consumer Claim along with a Tier One Consumer Claim.

A "Tier Two Consumer Claim," which shall be a claim made by a Consumer Class Member who attests to having paid for (in whole or in part) and received more than five Split Paxil CRŽ Tablets during the period between April 1, 2002 and March 4, 2005. A Consumer Class Member submitting a Tier Two Consumer Claim shall be entitled to payment, in an amount for Tier Two Consumer Claims set forth above, if he or she provides, as part of his or her claim, proof (satisfactory to the Claims Administrator) in the form of (a) a truthful written declaration that attests, under penalty of perjury, to the number of Split Paxil CRŽ Tablets he or she paid for and received during the relevant time period and (b) proof of payment for the Split Paxil CRŽ Tablets in the form of any one of the following: (1) a written prescription for Paxil CRŽ between April 1, 2002 and March 4, 2005; (2) a receipt, cancelled check, or credit card statement that shows that he or she paid for Paxil CRŽ between April 1, 2002 and March 4, 2005; (3) an EOB (explanation of benefits) that shows that he or she purchased or paid for (in whole or in part), made, or was obligated to make a percentage co-payment for Paxil CRŽ between April 1, 2002 and March 4, 2005; or (4) a letter from his or her physician stating that he or she prescribed and that the Consumer Class Member paid for, or was obligated to pay a percentage co-payment for, Paxil CRŽ between April 1, 2002 and March 4, 2005. Each Consumer Class Member may submit only one Tier Two Consumer Claim, and may not submit a Tier One Consumer Claim along with a Tier Two Consumer Claim.

REMAINING IN THE CLASS

8. What am I giving up if I do nothing and stay in the Class?(top)

If you do nothing, you will be included in the Class. You will be bound by the terms and conditions of the settlement. You will not be able to pursue any other lawsuit against GSK alleging claims for adulterated and/or defective Paxil CRŽ purchased or paid for (in whole or in part) between April 1, 2002 and March 4, 2005. If the settlement is approved, these claims against GSK and related entities will be "released," as more fully set forth in the Settlement Agreement.

This means that Class members will never be able to file a lawsuit for any claim relating to Paxil CRŽ purchased during the relevant period that was or could have been asserted as part of this lawsuit. This lawsuit does not cover personal injury claims. All Class members agree that they will not seek to file a claim against GSK or any released party based, in whole or in part, on any of the claims in this lawsuit.

Class members agree to forever release all claims even if they later discover new facts regarding the claims in this lawsuit. This includes any claims by you related to the subject matter of this lawsuit whether known or unknown, suspected or unsuspected, contingent or non-contingent. All claims by you related to the subject matter of this lawsuit will be released forever whether or not the facts were concealed or hidden, without regard to the subsequent discovery or existence of such different or additional facts.

EXCLUDING YOURSELF FROM THE SETTLEMENT

9. What do I do if I don't want to be in the Settlement Class?(top)

If you don't want to be in the Class and you want to keep the right to sue GSK about the same claims on your own, you must take steps to get out of the Class. This is called excluding yourself. By excluding yourself, you keep the right to file your own lawsuit or join another lawsuit against GSK about the claims in this lawsuit. If you exclude yourself from the Class, you will not be able to file a claim for money or benefits under the Settlement.

10. How do I exclude myself from the Class?(top)

It is no longer possible to exclude yourself from the class the deadline has passed. Requests for exclusion needed to be postmarked by May 15, 2009.

COMMENTING ON THE SETTLEMENT

11. Can I object to or comment on the settlement?(top)

No. The deadline for objecting to the settlement has passed. Objections needed to be filed with the parties and the court by July 1, 2009.

12. What is the difference between objecting to the settlement and excluding myself from the settlement?(top)

An objection to the settlement is made when you wish to remain a Class member and be subject to the settlement, but disagree with some aspect of the settlement. An objection allows your views to be heard in Court. In contrast, exclusion means that you no longer are a Class member and do not want to be subject to the settlement's terms and conditions. Once excluded, you lose any right to object to the settlement or to the attorneys' fees because the case no longer affects you and you will not receive any settlement payment.

THE LAWYERS REPRESENTING YOU

13. Do I have a lawyer representing my interests in this case?(top)

Yes. The Court has appointed the following law firms to represent you and other Class members:

Brian R. Strange, Esq.
Strange & Carpenter
12100 Wilshire Blvd.
Suite 1900
Los Angeles, CA 90025

John F. Nevares, Esq.
John F. Nevares & Associates
P.O. Box 13667
San Juan, PR 00908-3667

J.D. Horton, Esq.
Quinn Emanuel Urquhart Oliver & Hedges, LLP
865 S. Figueroa Street
10th Floor
Los Angeles, CA 90017
Camilo K. Salas III, Esq.
Salas & Co., L.C.
650 Poydras Street
Suite 1660
New Orleans, LA 70130

Michael L. Baum, Esq.
Baum, Hedlund, Aristei, & Goldman, PC
12100 Wilshire Blvd.
Suite 950
Los Angeles, CA 90025

These lawyers are called Class Counsel. You will not be charged personally for these lawyers, but they will ask the Court to award them a fee to be paid out of the Settlement Amount.

14. How will the lawyers be compensated?(top)

Class Counsel will request that the Court award attorneys' fees and reimbursement of expenses, not to exceed $9,333,333.33. This figure represents one-third (33 1/3%) of the total $28 million settlement. The Court, at its own discretion, may award more or less than these requested amounts without further notice to the Class members. Again, if you choose to hire your own attorney, you will be responsible for that attorney's fees and expenses.

15. Should I get my own lawyer?(top)

You don't need to hire your own lawyer. If you hire a lawyer to appear for you in the lawsuit, you will have to make your own arrangement for that lawyer's compensation.

16. What are the payments to Class representatives?(top)

The named Consumer Class Plaintiffs in this Action may ask the Court to award them incentive payments for their services of the Consumer Class Claims, up to $10,000 each, to the named Consumer Class representatives.

THE COURT'S FINAL APPROVAL HEARING

17. Did the court grant final approval of the settlement?(top)

Yes, on September 10, 2009 the court granted final approval to the settlement.

GETTING MORE INFORMATION

18. Where do I obtain more information?(top)

More details are in the Second Amended Complaint filed by Class Counsel, the Settlement Agreement and Release and the other legal documents that have been filed with the Court in this lawsuit. You can look at and copy these legal documents at any time during regular office hours at the Office of the Clerk of Court, United States District Court, District of Puerto Rico, Clemente Ruiz-Nazario U.S. Courthouse, Federico Degetau Federal Building, 150 Carlos Chardon Street, Hato Rey, PR 00918. Many of the documents may be viewed and downloaded on this website under Court Documents.

In addition, if you have any questions about the lawsuit or this Notice, you may:

Call toll free 1-866-458-3186

Write to:    Simonet Paxil CRŽ Claims Administrator
                c/o Rust Consulting, Inc.
                P.O. Box 24661
                West Palm Beach, FL 33416

Email:         info@SimonetPaxilCRSettlement.com