Amendment Must Still Undergo Judicial Review
MADISON, N.J., Jan. 10 /PRNewswire-FirstCall/ -- Wyeth (NYSE: WYE) today
confirmed that it would support the proposed Seventh Amendment to the National
Diet Drug Settlement, clearing the way for a fairness hearing on the Amendment
scheduled for January 18 before Judge Harvey Bartle III of the Eastern
District of Pennsylvania. Wyeth's deadline for exercising its walkaway right
to the Amendment was January 8.
Executed in May 2004, the Seventh Amendment to the Settlement Agreement
would create a new claims processing structure, funding arrangement and
payment schedule for Matrix Level I or II claims, the least serious but most
numerous claims in the Settlement. The Court granted preliminary approval of
the Amendment on August 26, 2004, and directed that notice be provided to the
class. Class members had until November 9, 2004 to decide whether to be
subject to the Amendment or to opt out and remain bound by the terms of the
original Settlement Agreement. Class members who have pending more serious
claims (Matrix Level III-V) are not affected by the Seventh Amendment and
would remain eligible to have those claims processed under the existing
Settlement Agreement and receive the current Matrix amounts, if those claims
are found to be valid. The Settlement Trust is a separate legal entity and
operates completely independently of Wyeth.
"Although the proposed Amendment must undergo further judicial review, we
are encouraged by the greater than 95 percent level of participation by class
members in the Settlement," says Lawrence V. Stein, Senior Vice President and
General Counsel of Wyeth. "The proposed Amendment ensures that the large
majority of class members who have less serious claims will receive
compensation on a streamlined basis. And it preserves funds in the existing
Trust for the more serious claims. It also would help resolve much of the
uncertainty that has surrounded the diet drug settlement -- for both class
members and for Wyeth."
If approved by the courts, the proposed Seventh Amendment would include
the following key terms:
* The Amendment would create a new Supplemental Fund, to be administered
by a Fund Administrator appointed by the District Court. Following
approval by the federal court overseeing the Settlement and any
appellate courts, the Company would ultimately deposit a total of
$1,275.0 million, net of certain credits, into the Supplemental Fund;
* All current matrix Level I and II claimants who qualify under the
Seventh Amendment, who pass the supplemental Fund's medical review and
who otherwise satisfy the requirements of the Settlement, would receive
a pro rata share of the $1,275.0 million Supplemental Fund, after
deduction of certain expenses and other amounts from the Supplemental
Fund. The pro rata amount would vary depending upon the number of
claimants who pass medical review, the nature of their claims, their
age and other factors. A Seventh Amendment participant who does not
qualify for a payment after such medical review would be paid $2,000
from the Supplemental Fund;
* The Amendment would preclude future Level I and Level II matrix claims.
Participating class members who in the future may have become eligible
to file Level I and Level II matrix claims would receive a $2,000
payment from the Settlement Trust; such payments would be funded by the
Company apart from its other funding obligations under the national
settlement;
* If the participants in the Seventh Amendment have heart valve surgery
or certain other more serious medical conditions by December 31, 2011,
they would remain eligible to submit claims to the existing Settlement
Trust and be paid the current matrix amounts if they qualify for such
payments under terms modified by the Seventh Amendment. In the event
the existing Settlement Trust is unable to pay those claims, the
Company would guarantee payment; and
* All class members who participate in the Seventh Amendment would give
up any further opt-out rights. Approval of the Seventh Amendment would
also preclude any lawsuits by the Trust or the Company to recover any
amounts previously paid to class members by the Trust, as well as
terminate the Claims Integrity Program as to all claimants who
participate in the Seventh Amendment.
The Company is evaluating potential additional charges relating to the
diet drug litigation in connection with the preparation of its year-end
financial statements.
Wyeth is one of the world's largest research-driven pharmaceutical and
health care products companies. It is a leader in the discovery, development,
manufacturing, and marketing of pharmaceuticals, vaccines, biotechnology
products and nonprescription medicines that improve the quality of life for
people worldwide. The Company's major divisions include Wyeth
Pharmaceuticals, Wyeth Consumer Healthcare and Fort Dodge Animal Health.
SOURCE Wyeth
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Related links:
http://www.wyeth.com
CONTACT:
Media: Natalie de Vane, Wyeth,
+1-484-865-5139, or Douglas Petkus, Wyeth Pharmaceuticals,
+1-484-865-5140; Investors: Justin Victoria, Wyeth,
+1-973-660-5340
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