Judge slams arthritis drug payout sum

A federal court judge says a $500,000 payout for Australians who say an arthritis drug caused their heart attack is not adequate compensation.

Australians who fought a four-year legal battle against a pharmaceutical company whose drug they insist caused their heart attacks will share in a half million-dollar settlement.

More than 1600 people sued drug company Merck in a class action over arthritis medication Vioxx, which was withdrawn from sale globally in 2004 following concerns over side effects.

The Federal Court judge who approved a settlement payout on Thursday said the maximum individual group members could receive was $4629.36, later describing the sum as "nominal".

The total amount to be paid is $497,500.

Judge Christopher Jessup said it was inconceivable a person would regard the sum as adequate for the damage associated with a heart attack to which Vioxx materially contributed.

"The striking feature of the settlement is the size of the overall settlement sum itself," Judge Jessup said.

However, he also noted there had been very few objections and said issues with a settlement agreement from 2013, which he refused on the grounds it wasn't fair, had been addressed.

The amended settlement recognises the different personal circumstances of members of the class action which could have predisposed them to heart attacks.

This means only a small number will receive the maximum amount.

The lead plaintiff, Victorian grandfather Graeme Peterson, was awarded $330,000 in 2010 after Justice Jessup found Vioxx caused him to have a heart attack.

That decision was overturned on appeal to the Full Court but the judgment still allowed others to continue legal action.


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Source: AAP


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