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Fen-Phen Again

By ALM Staff | Law Journal Newsletters |
November 10, 2003

Nearly 83,000 Fen-Phen users, including those whose claims have already been approved, may have their payments delayed or denied due to a new scheme instituted by the trustees of the Wyeth Settlement Trust, according to a lawsuit filed Nov. 5 by New York City-based law firm Napoli, Kaiser, Bern & Associates. The suit was filed on behalf of several individuals who are awaiting payment of damages from the trust, formerly known as The American Home Products Settlement Trust.

After a prolonged court case, a settlement was reached in 2002 that entitled Fen-Phen users to compensation for heart damage related to the drug's use. The Wyeth Settlement Trust was established to accept and process claims, and award benefits under an established formula.

The new suit, filed on behalf of some of Napoli, Kaiser, Bern's approximately 1000 clients, alleges that the trustees have frozen more than 90% of the remaining 83,000 claims, refusing to process them any further, in direct contradiction to the settlement, which called for a “first-in, first-out” processing order. According to the complaint, the trustees have adopted an arbitrary prioritization scheme, which means that the vast majority of legitimate claims may never be paid, even those claims that had previously been approved for payment. “Our clients, who have long-standing, significant injuries from the use of this medication, have met all medical and legal criteria for payment and their claims have been approved,” said Marc Bern, a senior partner at Napoli, Kaiser, Bern. “However, they have been told that their claims will not be processed and/or paid, due to a new 'claims integrity program' and a 'prioritization scheme' that, in effect, allows the trustees to pick and choose who will receive benefits.”

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