Practice Areas > Pharmaceutical/Health Care

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Korein Tillery has applied its extensive experience in prosecuting product liability and consumer fraud actions to pharmaceutical litigation.

In today's medical market consumers are faced with rising costs of already exorbitantly priced prescription drugs. Compounding the problem is the willingness of pharmaceutical manufacturers to mislead consumers and physicians with respect to adverse risks associated with their products.  All too frequently, consumers are finding out about serious side effects that have been associated with their prescription drugs only after millions of prescriptions have been dispensed to an unknowing public.  In addition, pharmaceutical companies often violate the law and the rights of consumers through fraudulent patent enforcement and by conspiring with separate companies to delay the entry of generic alternatives into the market.

KT is amongst the leaders in the prosecution of consumers' claims against prescription drug manufacturers for their fraudulent marketing schemes.

Representative Matters

Hoormann v. SmithKline Beecham, 04-L-715 (Ill.Cir.Ct. May 17, 2007).  Lead Counsel: Stephen M. Tillery, Stephen A. Swedlow and Aaron M. Zigler.  In July 2004, Korein Tillery filed suit on behalf of a nationwide class of purchasers alleging that SmithKline Beecham promoted Paxil® and Paxil CRTM for prescription to children and adolescents despite having actual knowledge that these drugs exposed children and adolescents to dangerous side effects while failing to treat their symptoms.  Following three years of litigation, Korein Tillery obtained a settlement that established a $63.8 million fund to reimburse class members 100% of their out-of-pocket expenses.  In contrast, the New York Attorney General's office settled their lawsuit concerning the same conduct for a $2.5 million fine.

Prather v. Pfizer Inc., 02-L-480 (Ill.Cir.Ct. Dec. 2, 2004).  Lead Counsel: Stephen M. Tillery and Aaron M. Zigler.  Following the withdrawal from the market of the anti-diabetes prescription drug Rezulin (which was advertised as a "breakthrough new drug" that was as "safe as a placebo"), Korein Tillery filed suit against Pfizer, and its subsidiary, Warner-Lambert, alleging that the defendants engaged in unfair business conduct relating to their advertising and pricing.  Over the course of the three years that Rezulin was on the market, many people died and many more were seriously injured as a result of its use.  Because of the harmful effects of Rezulin, thousands of personal injury cases and 50 class action cases were filed.  Of the fifty Rezulin class actions, this was the only action to lead to any recovery.  The success of this theory changed the landscape of pharmaceutical litigation.  The settlement that was reached did not face a single objection and established a fund of $60 million to pay plaintiffs a cash award of 85% of their out-of-pocket expenses for Rezulin and to pay an additional $20 million cy pres award to finance diabetes research.  The cy pres was distributed as follows:

  • $5,000,000 to the University of Chicago School of Medicine, Diabetes Research Center;
  • $5,000,000 to Centers for Disease Control, Illinois Diabetes Prevention and Control program, Illinois Department of Human Services;
  • $5,000,000 to Illinois Institute of Technology, Engineering Center for Diabetes Research and Education;
  • $2,000,000 to Lubavitch Chabad of Illinois;
  • $3,000,000 to United Way of Metropolitan Chicago.

Adapted from trust and estate law, "cy pres" allows for distribution of unclaimed damage awards in class-action lawsuits where it is not possible to determine each plaintiff's actual damages or when plaintiffs fail to collect their portion of the award. See Ameet Sachdev, Charities reaping lawsuit dividends, Chicago Tribune, September 9, 2007.  The settlement was reported as the largest settlement or verdict in Illinois in 2004.  This settlement was used on the floor of the Senate as an example of why state court class actions serve the public good. See 150 Cong. Rec. 92, S7714-17 (July 7, 2004 statement of Sen. Durbin); 151 Cong. Rec. 12, S1082-85 (February 8, 2005 statement of Sen. Durbin).

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