MEALEY'S LITIGATION REPORT:
Class Actions

Vol. 6, #17
November 2, 2006

Third-Party Payer Sues Blood-Thinner Manufacturer, Claiming Drug Poses Risk

NEWARK, N.J. - An Alabama-based company filed a class action lawsuit on Oct. 17, alleging that the manufacturers of the blood thinner Plavix duped third-party payers into paying for insureds' prescriptions of the anti-coagulant drug despite the drug only providing minimal benefit to many patients and posing serious health risks to others (Skilstaf Inc. v. Bristol-Myers Squibb Company, et al., No. 3:06-cv- 04965, D. N.J.).

(Complaint in Section C. Document #43- 061102-112C.)

Alexander, Ala.-based business consulting firm Skilstaf Inc. filed a class action complaint in the U.S. District Court for the District of New Jersey, alleging that Bristol-Myers Squibb Co., Sanofi-Aventis and Sanofi-Synthelabo Inc. manufactured and marketed Plavix to American consumers even though they were aware the drug posed a serious risk of heart attack, stroke, serious blood disorders and death.

Skilstaf claims that the defendants emphasized profits over patient safety. The plaintiff further claims that the defendants were aware that Plavix was only minimally more efficacious than aspirin in preventing heart attacks and strokes.

Skilstaf alleges that the defendants exaggerated the results of studies and made false statements in their advertising and promotional materials for the sole purpose of increasing the profits from sales of Plavix.

The plaintiff claims that the defendants repeatedly thwarted the law and their duty to tell the public the truth about the drug they were allegedly overpromoting.

Skilstaf maintains that the defendants repeatedly ignored U.S. Food and Drug Administration warnings to stop misleading consumers about the use of Plavix.

Putative Class

The plaintiff seeks to represent a class of all entities that made third-party payments for Plavix.

Skilstaf seeks damages for violations of the New Jersey Consumer Fraud Act, breach of express warranty, breach of implied warranty of merchantability and unjust enrichment.Skilstaf seeks actual damages, compensatory damages, disgorgement of unjustly paid sums of money, punitive damages and attorney fees and costs.

Skilstaff Counsel

Michele A. DiMartino of Miller & Associates in Bala Cynwyd, Pa.; Nancy Hersh, Mark E. Burton, Charles E. Kelley and Nicola T. Drake of Hersh & Hersh in San Francisco; Russell J. Drake and W. Todd Harvey of Whatley Drake & Kallas in Birmingham, Ala.; Mitchell Breit of Whatley, Drake & Kallas in New York; and Michael J. Miller, J. Christopher Ide and Christopher A. Gomez of Miller & Associates in Alexandria, Va., represent the plaintiff.

Consumer Class Action

On Oct. 30, a New Jersey couple sued Bristol-Myers Squibb in what is believed to be the first personal injury lawsuit involving the blood-thinning drug (Dorothy and Thomas Hall v. Bristol-Myers Squibb, et al., No. 3:06-cv-05203, D. N.J.).

(Hall complaint available. Document #43- 061102-024C.)

Dorothy and John Hall filed a complaint in the U.S. District Court for the District of New Jersey, alleging that Bristol-Myers and Sanofi-Aventis are misleading the public and hiding the risks associated with Plavix. The allegations are similar to those alleged in the third-party payor suit detailed above.

The plaintiffs seek damages for violation of the New Jersey Product Liability Act, the New Jersey Consumer Fraud Act and the New Jersey Punitive Damages Act. They seek compensation for the injuries sustained as a result of the defendants' negligent and wrongful conduct in connection with the design, development, manufacture, testing, packaging, promoting, marketing, distributing and labeling of Plavix.

Hall Counsel

Michele A. DiMartino of Miller & Associates in Bala Cynwyd, Pa., Nancy Hersh, Mark E. Burton, Charles E. Kelley and Nicola T. Drake of Hersh & Hersh in San Francisco and Michael J. Miller, J. Christopher Ide, Timothy Farrell and Christopher A. Gomez of Miller & Associates in Alexandria, Va., represent the plaintiffs.