Legal Fees Capped in Vioxx Settlement

U.S. District Judge Elden Fallon, the federal judge overseeing much of the massive Vioxx litigation, on Wednesday capped plaintiffs’ attorney fees at 32 percent. In doing so he stated that he wanted to ensure that attorney fees were reasonable. He also indicated that attorneys could recover reasonable costs.

The judge gave several reasons for the limit, noting the global settlement reached last November streamlined the work of the participating attorneys. He wrote that he had an increased responsibility to keep fees reasonable because most of the claimants are elderly and frail after having “suffered life-threatening injuries” — or they are survivors of people who died of a heart attack or stroke — so they may not have been able to negotiate the most favorable contracts with attorneys.

Merck & Co., the maker of Vioxx, pulled the painkiller from the market in September 2004 after its own research showed it doubled risk of heart attack and stroke. According to an AP article, there are 871 law firms involved in the litigation which started about the same time as Merck pulled the drug off the market.

Claimants who are part of the Settlement agreement will initially receive 40 percent of their final settlement amount. That will initially go into an escrow account until attorney fees and any medical liens such as Medicare have been deducted. Initial payouts will only be for those who suffered heart attacks. Claimants who suffered strokes will begin to see payments starting in February.

More than 44,000 of 47,000 eligible claimants have enrolled in the Program according to the Official Vioxx Settlement website. This is more than 93 percent. As part of the agreement Merck had insisted that at least 85 per cent of those eligible had to be registered.