In re Actos (Pioglitazone) Products Liability Litigation

274 F. Supp. 3d 485
CourtDistrict Court, W.D. Louisiana
DecidedJuly 17, 2017
DocketMDL No. 6:11-md-2299
StatusPublished
Cited by8 cases

This text of 274 F. Supp. 3d 485 (In re Actos (Pioglitazone) Products Liability Litigation) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Actos (Pioglitazone) Products Liability Litigation, 274 F. Supp. 3d 485 (W.D. La. 2017).

Opinion

HONORABLE RÉBECCA F. DOHERTY, UNITED STATES DISTRICT JUDGE

CONTENTS

I. FACTUAL AND PROCEDURAL BACKGROUND . . 488

A. Prior to Establishment of MDL 2299...488

B. Establishment of MDL 2299.. .489

C. State Court Proceedings... 492

D. Procedural History Prior to Bellwether Trial.. .493

E. Discovery, Preparation for the Bellwether Trial, Allen v. Take dee.. .495

F. The Master ' Settlement Agreement. . .502

G. Implementation ' of the Settlement. . .507

H; The Initial Hold-Back on Settlement Payments... 510

I. Nationwide Settlements,. .511
J. Additional Comments on Common Benefit Efforts.. .511 *
II. COMMON BENEFIT FEE AND EXPENSE REVIEW PROCESS.. 5Í3
III. METHODOLOGY FOR CALCULATING AGGREGATE FEE AWARD... 517

A. Distinction, between Reasonable Hourly Rates in Multidistrict Litigations and Class Actions... 517

B. Calculating the Aggregate Fee Award.. .522
IV. REASONABLENESS ANALYSIS... 524

[487]*487A. Valuation of the Benefit Obtained ...524

B. Benchmark-Percentage. .-:524
C. Johnson Factors... 526

1. Novelty and Difficulty of the Issues (Factor 2); The Skill Required to Perform the Legal Service Adequately (Factor 3); and The Experience, Reputation, and Ability of the Attorneys (Factor 9)... 528

2. Time and Labor Required (Factor 1); Preclusion of Other Employment (Factor 4); Time Limitations Imposed by the Client or the -Circumstances (Factor 7).. .528

3. The Amount Involved and the Results Obtained (Factor 8)... 530

4. Nature and Length of the Professional Relationship with the Client (Factor 11)...531

5. The Customary Fee for Similar Work in the Community (Factor 5), Whether the Fee is Fixed or Contingent (Factor 6), Awards in Similar- Cases (Factor 12)... 531

6. The Undesirability of the Case (Factor 10)...532

7. Conclusion: Johnson Factors... 533

V. ALLOCATION OF COMMON BENEFIT FEES AND EXPENSES... 533
VI. CONCLUSION ...534

MEMORANDUM RULING

(Common Benefit Fees and Allocation)

Early in this MDL, and with the input of the plaintiffs’ counsel and the Special Masters, this-Court established a system to maintain -ongoing records of all common benefit time and expense—ie., time --and expense incurred for the benefit of all plaintiffs, rather than any individual plaintiff alone.1 According to thafprotocol, only certain kinds of time and expense would be allowed to be incurred for the .common benefit, and any attorney who wished to perform common benefit work was required to submit a request to do so to the Plaintiffs’, Steering Committee, which, along with the Court, was vested with the authority to approve or deny such requests with the instruction of the Court -that -all otherwise- qualified attorneys who desired to perform common benefit work be allowed to do so. Furthermore, any approved common benefit time or expense that was incurred, also, would be submitted to Deputy Special Master DeJean, who was tasked with reviewing all such submissions on an ongoing basis, and either approving them, rejecting them, or returning them to-the submitter for clarification or to address any deficiencies in the submission. A Master Settlement Agreement (“MSA”)2 was executed on April 28, 2015, and provided, in part, that participating claimants and their counsel agreed to submit a portion of each of their recoveries to compensate the common benefit expense and fees incurred, respectively.3 On September 1, 2015, the Court entered a preliminary order setting aside a percentage of all recovery in anticipation of a final order establishing a common benefit fund and distribution.4 Thereafter, by Order [488]*488dated August 7, 2015,5 this Court instructed Deputy Special Master DeJean to gather information relevant to this Court’s decision of how best to allocate the common benefit fees generated as a result of the MSA. and the Assessment Order, among Participating Counsel and the PSC,6 and to provide that information to the Court. Subsequently, on September 1, 2015, this Court issued a “Case Management Order: Holdback Order” [Rec. Doc. 5850], ordering that funds be withheld from settlement payments in order to compensate common benefit attorneys’ fees and expenses and/or costs, should a common benefit fund prove necessary. For the reasons given below, this Court (1) finds that a common benefit fund is necessary, (2) finalizes the amounts provided in the Holdback Order and “Case Management Order: Assessment of Common Benefit Fees and Expenses and/or Costs” [Rec. Doc. 6288], and (3) determines the amounts that will be allocated among participating firms and attorneys. In order to comply with this Court’s Order to provide it with the information necessary to make informed allocation decisions, Deputy Special Master DeJean has submitted a Report and Recommendation, which is attached to this Ruling (Attachment A). For the reasons that follow, this Court adopts and incorporates herein Deputy Special Master DeJean’s Report and Recommendation, and issues the following ruling on common benefit fees, their necessity, and their allocation, as well as common benefit expenses.

I. FACTUAL AND PROCEDURAL BACKGROUND
A. Prior to Establishment of MDL 2299

This multidistrict litigation concerns Pioglitazone (marketed in several formulations and under several brand names, but known by the commercial name and referred to herein as Actos®), which was approved for sale in the United States in 1999.7 Actos® was developed and produced by Takeda Pharmaceutical Company Ltd. (a Japanese company with several subsidiaries in the United States, which, here, will be referred to collectively as “Take-da”) and was marketed in the United States for a portion of time by Eli Lilly and Company (“Eli Lilly”); Actos® was available in the United States as early as 1999.8 The plaintiffs allege that in June, 2011, regulators in Europe, Canada, and the U.S. took action to warn the public that Actos® might increase the risk of bladder cancer in humans.9 According to the first Motion to Transfer filed with the Judicial Panel on Multidistrict Litigation (“JPML”), as of August 81, 2011, there were at least eleven (11) actions pending in eight (8) district courts alleging injury from usage of Actos® and seeking recovery from Takeda and Eli Lilly.10

Shortly after certain governmental warnings were issued, attorneys who would eventually become Lead Counsel, members of the Plaintiffs’ Steering Committee (“PSC”), and other Participating Counsel11 began to file actions and to co

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274 F. Supp. 3d 485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-actos-pioglitazone-products-liability-litigation-lawd-2017.