Takeda Pharmaceuticals Approve Actos Settlement Agreement

Takeda Pharmaceuticals executives have reached agreement with a committee of negotiating plaintiffs’ counsel on an approximately $2.4 billion settlement to resolve well over 8,000 lawsuits filed against the company for failing to disclose bladder cancer risks present in the diabetes drug Actos. Many of the lawsuits are part of the Louisiana Multi-District Litigation (MDL).

The “Actos Resolution Program” will pay an average of $287,000 per bladder cancer case where the plaintiff first used Actos prior to December 1, 2011. Actos clients can also opt to forgo the settlement and take their case to court seeking larger damages.

In order for the Actos Settlement to take effect, at least 95% of the current plaintiffs must accept the settlement terms. This would result in Takeka paying $2.37 billion as the total settlement payment. However, if the percent increases to 97% then Takeda’s payment obligation will increase to $2.4 billion. Additional costs could raise Tadeka’s settlement expenses to $2.7 billion.

In April 2014, a Louisiana jury awarded $9 billion in punitive damages and $1.5 million in compensatory damages from Takeda Pharmaceuticals and Eli Lilly & Co., their marketing partner, in a single case. That award was later reduced to $36.8 million by the judge.

Tadeka’s Actos settlement was first reported on April 1, 2015 by Bloomberg in the amount of $2.2 billion. However, plaintiffs’ lawyers rebuked that offer and felt their clients were entitled to more compensation from the drug manufacturer.

Documentation for the Actos settlement agreement including the Master Settlement Agreement dated April 28, 2015 is available at the official Actos settlement website.

Source: Louisiana MDL Website