In Re Vioxx Products Liability Litigation

802 F. Supp. 2d 740, 2011 U.S. Dist. LEXIS 92706, 2011 WL 3563004
CourtDistrict Court, E.D. Louisiana
DecidedAugust 9, 2011
DocketMDL 1657
StatusPublished
Cited by4 cases

This text of 802 F. Supp. 2d 740 (In Re Vioxx Products Liability Litigation) is published on Counsel Stack Legal Research, covering District Court, E.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 Vioxx Products Liability Litigation, 802 F. Supp. 2d 740, 2011 U.S. Dist. LEXIS 92706, 2011 WL 3563004 (E.D. La. 2011).

Opinion

*758 ORDER & REASONS

ELDON E. FALLON, District Judge.

The Court has previously determined the value of the common benefit work in the Vioxx MDL and associated state litigations which produced the global settlement of November 9, 2007. In re Vioxx Prods. Liab. Litig., 760 F.Supp.2d 640 (E.D.La.2010) (“October 19, 2010 Order and Reasons”). The value was fixed at 6.5% of the $4.85 billion settlement amount for a total of Three Hundred and Fifteen Million, Two Hundred and Fifty Thousand Dollars ($315,250,000.00). Now, the Court must allocate those common benefit attorneys’ fees among the attorneys who did the work which produced this settlement. This allocation is in addition to common benefit costs, which have already been distributed.

I. FACTUAL BACKGROUND

To put this matter in perspective, a brief review of this litigation is appropriate.

A. Vioxx Litigation and Settlement

This multidistrict products liability litigation involves the prescription drug Vioxx, known generieally as Rofeeoxib. Merck, a New Jersey corporation, researched, designed, manufactured, marketed, and distributed Vioxx to relieve pain and inflammation resulting from osteoarthritis, rheumatoid arthritis, menstrual pain, and migraine headaches. On May 20, 1999, the Food and Drug Administration approved Vioxx for sale in the United States. Vioxx remained publicly available until September 20, 2004, when Merck *759 withdrew it from the market after data from a clinical trial known as APPROVe indicated that the use of Vioxx increased the risk of cardiovascular thrombotic events such as myocardial infarction (heart attack) and ischemic stroke. Thereafter, thousands of individual lawsuits and numerous class actions were filed against Merck in state and federal courts throughout the country alleging various products liability, tort, fraud, and warranty claims. It is estimated that 105 million prescriptions for Vioxx were written in the United States between May 20, 1999 and September 30, 2004. Based on this estimate, it is thought that approximately 20 million patients have taken Vioxx in the United States. 1

California was the first state to institute a consolidated state court proceeding on October 30, 2002. New Jersey and Texas soon followed suit, on May 20, 2003 and September 6, 2005, respectively. On February 16, 2005, the Judicial Panel on Multidistrict Litigation (“MDL”) conferred MDL status on Vioxx lawsuits filed in various federal courts throughout the country and transferred all such cases to this Court to coordinate discovery and to consolidate pretrial matters pursuant to 28 U.S.C. § 1407. See In re Vioxx Prods. Liab. Litig., 360 F.Supp.2d 1352 (J.P.M.L. 2005). Even after the creation of this federal MDL, many cases remained pending in the various state courts, particularly the courts in California, New Jersey, and Texas. It is estimated that the census of the litigation totaled over 50,000 claims.

On March 18, 2005, this Court held the first status conference in the Vioxx MDL to discuss procedures for moving this matter forward. Shortly thereafter, the Court appointed steering committees of counsel to represent the parties. In addition, the Court announced at monthly meetings that any attorney who was not appointed but who wished to do common benefit work on behalf of Vioxx claimants could do so by joining a subcommittee. The Plaintiffs’ Steering Committee (“PSC”) was encouraged to establish subcommittees and include non-PSC members on these subcommittees. 2

Furthermore, to give transparency to this litigation, the Court created a web site accessible to all counsel and the public at large. All motions, Court orders, opinions, recent developments, a calendar of scheduled events, transcripts of hearings, and various other matters were posted on this web site. 3 Throughout the litigation monthly status conferences were held in open court. Notice of the meetings were posted on the web site and were open to all. The Court established a call-in number for those unable to attend in person, and also posted transcripts of the conferences on its web site.

Discovery rapidly commenced. The common benefit attorneys were responsible for all aspects of pre-trial preparation, including document discovery, the taking of depositions, preparation of experts, motions practice, and to some extent, coordination of federal and state court proceedings. Over nine million documents were discovered and collated. Thousands of depositions were taken and at least 1,000 discovery motions were argued to the Court. After a reasonable period for discovery, the Court assisted the parties in *760 selecting and preparing certain test cases for bellwether trials. Additionally, a number of similar trials were scheduled in state courts.

This Court conducted six Vioxx bellwether trials. 4 The first of the bellwether trials took place in Houston, Texas, while this Court was displaced following Hurricane Katrina. The five subsequent bellwether trials took place in New Orleans, Louisiana. Only one of the trials resulted in a verdict for the plaintiff. Of the five remaining trials, one resulted in a hung jury and four resulted in verdicts for the defendant. During the same period that this Court was conducting six bellwether trials, approximately thirteen additional Vioxx-related cases were tried before juries in the state courts of Texas, New Jersey, California, Alabama, Illinois, and Florida.

After extensive discovery, after the bellwether trials were completed, and after a number of trials were completed in state courts, this Court and courts from Texas, New Jersey, and California met in New Orleans with a representative of the Board of Merck, their attorneys, and representatives of the PSC. The Judges suggested that it was an appropriate time to explore a global resolution of this litigation. 5 Negotiating Plaintiffs’ Counsel (“the NPC”) were appointed to explore and engage in settlement discussions with Merck. Counsel for Merck and the NPC met together more than fifty times and held several hundred telephone conferences. Although the parties met and negotiated independently, they kept this Court and the coordinate state courts of Texas, New Jersey, and California informed of their progress in settlement discussions.

On November 9, 2007, Merck and the NPC formally announced that they had reached a Settlement Agreement. See Settlement Agreement, In re Vioxx Prods. Liab. Litig., MDL 1657 (E.D.La. Nov. 9, 2007) (“Settlement Agreement” or “MSA”), available at http://www. broumgreer.com/vioxxsettlement.

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802 F. Supp. 2d 740, 2011 U.S. Dist. LEXIS 92706, 2011 WL 3563004, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-vioxx-products-liability-litigation-laed-2011.