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| Products Liability Blawg
Your state-of-the-art resource for products liability law
Ephedra Under Fire in California. On Monday, eight Northern California county district attorneys and a city attorney of San Diego filed a civil lawsuit against Cytodyne Technologies Inc. and its corporate officer, Robert Chinery. The suit accuses them of unfair business practices and making misleading statements about the effectiveness of the dietary supplement, Xenadrine, which contains ephedra. The suit seeks to end deceptive advertising and asks for civil penalties. As reported by Reuters on findlaw.com.
Pfizer Close to Settling Suit Over Neurontin. Pfizer is close to settling a whistleblower lawsuit brought by Dr. David Franklin, a medical liaison hired by Warner-Lambert, a company that it acquired in 2000. In the suit, Dr. Franklin alleged that the company illegally marketed Neurontin, an epilepsy drug, for uses for which it was not approved. As reported in The New York Times.
Highly Questionable Practices. Joseph F. Rice, a well-known class action lawyer, has agreed to accept a $20 million "fee" from the parent of a company that he is suing on behalf of workers exposed to asbestos. This "fee" will be in addition to the fee that he collects from his clients for settling their claims against the same company. In other words, he is being paid by the plaintiffs, whom he represents, and the defendants, whom he is suing. Hmmm. Mr. Rice is reportedly being paid this "fee" to broker settlements with other lawyers handling asbestos claims against the company. As reported in The New York Times.
If it Sounds Too Good to be True. . . Rexall Sundown, Inc agreed to repay consumers up to $12 million to settle charges of deceptive advertising by the Federal Trade Commission. The company claimed that its dietary supplement, Cellasene, could erase your cellulite and give you "smoother-feeling legs and a firmer-looking appearance of your skin after just eight weeks." The settlement will become final upon approval by a federal judge in Miami and completion of class action lawsuits in California and Florida. As reported by The Associated Press in The Washington Post.
The Fat Lady is About to Sing. Closing arguments occurred today in an Illinois class action lawsuit against Phillip Morris brought by smokers who alleged that they were deceived by labelling on "light" cigarettes. The plaintiffs seek $7.1 billion (yes, that's with a "b") in compensatory damages and twice that amount in punitive damages. As reported by Reuters in The Washington Post.
Asbestos Workers Can Recover for Fear of Cancer Only. The United States Supreme Court ruled 5-4 today that workers exposed to asbestos who have asbestosis can recover damages for the fear of cancer if they can document their fears about their health, even though they may never develop cancer. The six retired railroad workers who brought the lawsuit had obtained a $5.8 million dollar verdict against Norfolk & Western Railway Company in the trial court, which was reduced by the intermediate appellate court to $4.9 million dollars. The significance of the ruling will be determined when state courts start to determine whether to extend it beyond the context of railroad workers. The dissent pointed out the important point that allowing these workers to collect money means fewer dollars for those who do develop asbestos related cancer. The opinion itself can be read here while the article reporting about the case can be read in The Washington Post.
American University Law Professor Hanging Onto Job By a Thread. In December, the District of Columbia Court of Appeals upheld a one year suspension of American University law professor Mark Hager from the practice of law and found that he engaged in "conflicts of interest, dishonesty" and "improper conduct" during his representation in 1997 of two women in a class action products liability lawsuit against Warner-Lambert, the maker of Nix lice shampoo. The women challenged Warner-Lambert's representation that Nix shampoo was 99% effective. During the suit, Hager and his co-counsel got $225,000 in "secret" fees and expenses from Warner-Lambert, while consumers got $10,000 in coupons. Worse, Hager and his co-counsel agreed with Warner-Lambert not to tell their clients about the "secret" payments and agreed never again to represent claimants in similar claims. As reported by The Washington Post.
FDA Proposes Standards for Supplements. On Friday, the Food and Drug Administration proposed rules for labelling on dietary supplements. As reported in The Associated Press.
No Big Surprise. A study released Saturday has scientifically proven what we already knew --- that a combination of eating fast food and watching television can cause obesity. As reported by The Associated Press. We may not have seen the end of lawsuits against food manufacturers seeking to hold them liable for allegedly making people obese. Despite suffering a defeat earlier this year when a New York City federal judge dismissed a class action lawsuit against McDonald's blaming its food for obesity, plaintiffs' lawyers may take another bite at the apple in another forum and/or venue, especially if the study proves effects that may not have been obvious to us all.
Cell Phone Class Action Lawsuits Dismissed. A federal judge dismissed five class action lawsuits against cell phone manufacturers that sought to require them to provide headsets to protect users from radiation emitted by the devices. The federal judge reportedly dismissed the suits on the grounds that they are pre-empted by federal standards regulating cell phones. As reported by The Associated Press in The New York Times.
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