Now consider the Vioxx case. In the first successful case the jury awarded $254 million to the widow of a man who died of a heart attack allegedly brought about the inflammatory. (The verdict was reduced to $26 million by the state of Texas due to state imposed limitations.) Another early Vioxx settlement awarded a seven figure settlement to the widow of a 71 year old smoker who’d suffered two previous heart attacks before taking Vioxx! To date Merck has paid more than $1 billion in claims for Vioxx.
Now, Vioxx passed FDA approval before ever appearing on the market. It had extremely negative side effects for a small minority fo takers.
ALL medications and drugs have negative side effects for some takers. Aspirin is fatal to some people who have Reye’s Syndrome or specific other conditions or allergies. All surgery carries a risk of death; people have died from routine procedures. Now, I’m not qualified to say how much of a probability it was that the people in the lawsuits against Merck died solely due to their use of Vioxx because I don’t have the background in chemistry, medicine, physiology, etc., to understand a very complicated matter, but I’m probably just as qualified as the jurors and judges in these cases.
As with PG&E, people who have demonstrated serious side effects since using Vioxx have received pennies on the dollar to what the law firms, who’ve had no harm, received. Again, Vioxx passed FDA approval twice and gave warnings when it was proven that there were side effects in a minority of users. (To some users it brought incredible relief.) The drug company certainly did not conspire to release a product that caused heart attacks.
The widow who was the plaintiff in the first case ultimately received about $15 million after the $26 million verdict was settled, the rest going to attorney’s fees and expenses. Her husband is still dead. The $26 million did not bring him back. Far more attorneys have become millionaires from Vioxx than plaintiffs and the lawsuits are still ongoing.
The comments about how capping damages is the same as saying “companies must not be punished for their wrongdoing” is willfully blind. Companies should be punished “ACCORDINGLY” and “PROPORTIONATELY” to how much damage was done. Merck should have to provide warnings; they should have to provide for the medical care of people who were injured by their FDA approved/laboratory tested product. Yes, Merck, even with the billion dollar payout, has still earned billions from Vioxx, but that’s because it’s a great product that has worked fantastically for many if not most users.
There are other drugs that are not as profitable. There are drugs that have been developed and found to work wonders in clinical trials that have never been released because the pharmaceutical companies cannot afford to take the risk of being sued. The profit margin is not enough to guard against at nine-figure verdict and so people suffer when a drug that would probably help them is available. That is one very real way that ridiculous verdicts hurt.
Another is this: even for a gazillion dollar giant like Merck, the billion dollars does not come from a mayonaisse jar. Merck’s stock dipped radically initially after the verdict. Merck’s stock is owned by Donald Trumps and the like who can afford that dip, but it’s also owned by mutural fund companies, state and corporate retirement funds and the likes whose investers cannot afford to take that hit. Their insurance company which had to pay nine figures of their losses have to regenerate that money by raising premiums and by liquidating stocks or letting go of less lucrative investments- there is a ripple effect of such a judgment.
The lawyers like Edwards don’t care about the Ripple effect. They are wildcatters. Their goal and their interest is to be rich enough that they don’t have to worry about a plant closing or layoffs from their actions. I doubt any have lost sleep from such matters.
Somebody made a comments in this or the Edwards thread about the jackpot justice payouts rewarding lawyers for pro-bono work or for taking cases where they lose. That’s BS. If BIG EVIL COMPANY X is guilty as sin it’s STILL not their responsibility to subsidize a law firm’s plaintiffs in another case. It’s a very real possibility that the other case failed because there was no merit to it or because the attorneys gave poor representation- why should they be rewarded for this? As for pro-bono work, if that’s the case then perhaps Merck should have been ordered to pay $10 million to fund financially independent salaried “street lawyers”.
Must run- will conclude later