Wyeth has agreed to revise a US class-action settlement for lawsuits concerning its diet drugs Redux and Pondimin, the Wall Street Journal and other news sources report. The move could expedite the resolution of thousands of pending diet-drug claims against the company.
Under the terms of the proposal, Wyeth would make $1.28 billion available to fund payments to people with heart-valve damage who agreed to participate in the modified version of a US settlement dating back to 1999. While the revised settlement would result in lower individual payments, the payments would be expedited and would guarantee compensation for people with proven heart damage, Morningstar reports.
"If approved by a federal judge later this month, the [Wall Street Journal] report said the revision would bring Wyeth closer to halting the financial drain of litigation over the diet drugs," as reported in CNN Money.
Wyeth has set aside close to $17 billion to cover litigation costs and liabilities over the drugs, of which approximately $3 billion remains. The $1.28 billion for the proposed revision in the settlement would come from this fund, as reported in Morningstar.
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