Thursday, December 30, 2004

Tough Vioxx litigation expected

Apart from dealing with Merck's attorneys who have declared that they do not plan to have any out-of-court settlements with Vioxx victims, relatives of those who lost their lives after taking Vioxx or those who suffered injuries have another enemy that they have to face in the coming months: legal changes planned by President Bush.

Vioxx recall (and troubles with Celebrex and Bextra) have energized the lobbyists who want to take away the rights of American people to sue drugmakers when they make killer drugs. And as they say in Washington, all stars are now aligned in their favor. All branches of government are controlled by a party that is committed to changing class action lawsuits which Americans have found as an effective tool to fight large corporations with their unlimited power and deep pockets. (Related article: Americans may soon lose their right to sue companies like Merck)

Let us review the list of events that are going to act against Vioxx victims unless something is done to stop them:

  1. The so-called Class Action Lawsuit Reform Act (being marketed using the buzzword "tort reform") has already passed the House and an effort will be made it to get it passed through Senate. President Bush has put all his weight behind it since he received million of dollars in campaign contributions from business groups that want to deprive Americans of their right to sue a pharmaceutical company when it causes death or injury through defective drugs.
  2. The Pharmaceutical Research and Manufacturers of America (PhRMA), which spent as much as $8 million on lobbying in just six months of 2004 (the latest period for which data is available) has now hired Billy Tauzin (a retired Congressman who showed that he is no friend of American people when he was head of the House committee that regulates the pharmaceutical industry) as its chairman. Tauzin received more than $218,000 in campaign contributions from pharmaceutical manufacturers over the past 15 years, says the Center for Responsive Politics, a campaign-finance watchdog group. Tauzin has consistently opposed allowing import of prescription drugs from Canada and other similar wishes of American people. The biggest item on the agenda: let drug companies do whatever they want.
  3. In the same period, the Chamber of Commerce of the U.S. and its Institute for Legal Reform spent $30 million on lobbying and advertisements emphasizing the need for tort reform.
  4. The pharmaceutical companies separately spent $46 million on lobbying and this does not include campaign contributions made to politicians, most of whom won the elections. No surprise then that in a search conducted for 2004 election cycle, 276 records were found for Merck employees, including several mentions of CEO Raymond Gilmartin.
  5. The American Medical Associations spent $9 million on lobbying in the six-month period and it also has tort reform on its agenda.

What does it mean for Vioxx victims?

It is not going to be easy for them to receive compensation from a company that has vowed to fight vigorously any demands from Vioxx victims. Now that it has the support of the administration and the FDA, Vioxx attorneys will have to work extremely hard to fight for victims.

Recommended article: Americans scared after Vioxx recall