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 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.

If the Settlement is approved, 40% of the Settlement Amount of $28 million (that is, $11.2 million) will be allocated to resolve third-party payor ("TPP") claims made by TPPs such as union health funds, insurance companies and workplace-based health plans. After deducting a portion of the attorneys' fees and expenses, payments made to the named TPP class representative, 40% of the costs of administering the settlement and an amount to cover "opt-outs" (if any), the remaining balance of this $11.2 million will be distributed to third-party payors in the class who purchased, paid for or reimbursed for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005 and who make valid claims under the Settlement Agreement.

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 third-party payors in the United States and its territories that purchased, paid for or reimbursed for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005 ("Third-Party Payor Class" or "TPP Class"), and the Court has preliminarily approved this settlement. The Third-Party Payor Class includes, among others, third-party payors, such as insurance companies, union-based health and welfare funds and employer sponsored health benefit plans, that purchased, paid for or reimbursed for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005. Defendants, their officers, directors, management, employees, subsidiaries, and affiliates are excluded from the settlement, as are the United States government and its agencies and departments, Medicare, Medicaid and all other governmental entities that made payments pursuant to any state's Medicaid program.

You could be a member of the Third-Party Payor 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 Third-Party Payor Class consists of third-party payors ("TPPs") in the United States and its territories that purchased, paid for or reimbursed for (in whole or in part) Paxil CRŽ between April 1, 2002 and March 4, 2005.

TPPs include insurance companies, employee benefit plans, health and welfare funds, or any other private entity that purchases, pays for, or reimburses the cost of, prescription medications for qualified persons such as insureds, members, dependants, or beneficiaries. Third-party claim administrators may also file a claim on behalf of a self-funded plan if the third-party claim administrator has legal authority and authorization from the self-funded plan to do so.

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

Excluded from the Third-Party Payor Class are (1) Defendants, their officers, directors, management, employees, subsidiaries, and affiliates, and (2) the United States government and its agencies and departments, Medicare, Medicaid and all other governmental entities that made payments pursuant to any state's Medicaid program.

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 Third-Party Payor's share of attorneys' fees and expenses, any payment to the named TPP class representative and 40% of the costs of administering the settlement are deducted from the $11.2 million, up to the balance will be distributed to Third-Party Payor Class members who qualify and submit a claim as described below. The total available for distribution to the TPP Class members may be reduced if more than 10% of the TPP Class (measured by covered lives) opts out of the settlement, in which case GSK will receive a refund based on the volume of TPP opt-outs (the "GSK Refund Amount").

In order to recover under the settlement, a Third-Party Payor Class member's submission must (a) truthfully attest, under penalty of perjury, that it purchased, paid for or reimbursed for (in whole or in part) Paxil CRŽ tablets on at least one occasion between April 1, 2002 and March 4, 2005, and (b) set forth the number of the TPP Class Member's covered lives as of December 31, 2004.

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

           1. Each TPP Claimant's Validated Covered Lives Number shall be divided by the number that is the total of all of the TPP Claimant's Validated Covered Lives Numbers (which does not include any TPP opt-outs). The result for each TPP Class Member that filed a valid claim, expressed as a percentage, shall be known as the "TPP Class Claimant's Recovery Percentage."

           2. The amount of each valid TPP Class Claimant's recovery under the settlement shall be determined by the Claims Administrator, subsequent to the Effective Date, by multiplying the TPP Claimant's Recovery Percentage by the total amount remaining in the TPP Class Escrow Fund after payment of (a) the GSK Refund Amount (if any), (b) all attorneys' fees and expenses awarded for litigation of the TPP Class Claims, (c) 40% of all notice costs, claims administration fees, taxes, and other administrative costs associated with the settlement, and (d) any incentive payment awarded to the named TPP Class Plaintiff, which total remaining amount shall be referred to herein as the "TPP Claims Payment Pool." The product of each valid TPP Claimant's Recovery Percentage times the TPP Claims Payment Pool shall be the amount of payment to be made to that TPP Class Claimant.

7. Is it too late to file a claim?(top)

Yes, we can no longer accept Claim Forms. Claims needed to be postmarked by August 10, 2009.

8. How do I request a reissue of my settlement check?(top)

If you received your check and would like to request a reissue please void the check and return it to us, along with a letter requesting the reissue to the Settlement Administrator at Simonet Paxil CRŽ Settlement Administrator, c/o Rust Consulting, Inc., P.O. Box 24661, West Palm Beach, FL 33416. Please allow 6 to 8 weeks for reissues.

REMAINING IN THE CLASS

9. 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, paid for or reimbursed 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 CLASS

10. 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.

11. 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

12. 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.

13. 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

14. 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:

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.

15. 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.

16. 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.

17. What is the payment to the Class representative?(top)

The named TPP Plaintiff in this Action may ask the Court to award it an incentive payment for its services of the TPP Class Claims, up to $20,000, to the named TPP Class representative.

THE COURT'S FINAL APPROVAL HEARING

18. 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

19. 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 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, you may: