In re Vioxx Products Liability Litigation

869 F. Supp. 2d 719, 2012 WL 1397633
District Court, E.D. Louisiana·Decided April 23, 2012·No. MDL No. 1657·Published·Cited by 5 cases

Opinion

ORDER & REASONS

ELDON E. FALLON, District Judge.

Currently pending before the Court is Merck’s Motion to Enjoin Missouri Plaintiffs Mary Plubell and Ted Ivey From Pursuing Relief for Vioxx Expenditures Already Subject to Settlements (Rec. Doc. 63744). The Court has reviewed the briefs and the applicable law and is now prepared to rule.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

This matter involves the interaction (and potential collision) between the Vioxx litigation transferred to this federal court by the Judicial Panel on Multidistrict Litigation, and a certified class action set for trial in Missouri state court. Merck, Defendant in both the MDL and in the Missouri case, petitions this Court for an injunction prohibiting the Missouri Plaintiffs from pursuing damages that Merck argues it has already paid in settlements consummated in the MDL. To resolve this motion, the Court will briefly summarize the Vioxx litigation and the parameters of certain settlements negotiated and consummated in the MDL; discuss the scope of the Court’s authority under the All Writs Act and the Anti-Injunction Act to enjoin state-court proceedings; and then decide whether an injunction is permitted and necessary to protect this Court’s jurisdiction or to effectuate judgments entered in the MDL.

First, a brief review of this litigation is appropriate. This multidistrict products liability litigation involves the prescription drug Vioxx, known generically 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 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 [721]*721events such as myocardial infarction (heart attack) and ischemic stroke. Thereafter, thousands of individual suits 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).

The Court oversaw rapid and substantial discovery. Counsel conducted 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. Millions of documents were discovered and collated. Thousands of depositions were taken and at least 1,000 discovery motions were argued. After a reasonable period for discovery, the Court assisted the parties in selecting and preparing certain test cases to proceed as bellwether trials. Additionally, similar trials were scheduled in state court.

This Court conducted six Vioxx personal injury bellwether trials.2 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. With the benefit of experience from these bellwether trials, as well as the encouragement of the several coordinated courts, the parties soon began settlement discussions in earnest.

This Court appointed Negotiating Plaintiffs’ Counsel (“the NPC”) to explore and engage in settlement discussions with Merck. Over the course of more than a year, 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, arid California informed of their progress in settlement discussions.

[722]*722On November 9, 2007, Merck and the NPC formally announced that they had reached a Settlement Agreement addressing Vioxx personal injury claims. See Settlement Agreement, In re Vioxx Prods. Liab. Litig., MDL 1657 (E.D.La. Nov. 9, 2007) (“PI Settlement” or “MSA”), available at http://www.browngreer.com/ vioxxsettlement. The PI Settlement created a pre-funded program for resolving pending or tolled state and federal Vioxx claims against Merck as of the date of the settlement, involving claims of heart attack (“MI”), ischemic stroke (“IS”), and sudden cardiac death (“SCD”), for an overall amount of $4.85 billion. Id. § “Recitals”.3 The Settlement is a voluntary opt-in agreement an objective program with multiple levels of review to allocate points and award compensation to individuals with qualifying injuries caused by Vioxx. The claimants who enrolled in the program executed a release of “any and all rights, remedies, actions, claims, demands, causes of action, [or] suits at law or in equity ... in any way, arising out of, relating to, resulting from and/or concerned with VIOXX.” (MSA, Exh. 1.2.2.3).

On July 17, 2008, Merck formally announced that it was satisfied that the thresholds necessary to trigger funding of the Vioxx Settlement Program would be met. See Minute Entry, July 17, 2008, Rec. Doc. 15362 (July 17, 2008). Merck further advised that it intended to waive its walk away privileges and that it would commence funding the Vioxx Settlement Program by depositing an initial sum of $500 million into the settlement fund, clearing the way for distribution of interim payments to eligible claimants. Id. Eventually some 99.9% of all eligible claimants enrolled in the program.

The PI Settlement proceeded at a very rapid rate in order to ensure that the plaintiffs would recover in a timely fashion. Final payments to heart attack claimants were completed prior to October 14, 2009, final payments to stroke claimants were completed by June 14, 2010, and final extraordinary injury payments were completed by June 29, 2010. Thus, in only 31 months, the parties to this case were able to reach a global settlement and distribute $4,353,152,064 to 32,886 claimants, out of a pool of 49,893 eligible and enrolled claimants.

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In re Vioxx Products Liability Litigation, 869 F. Supp. 2d 719, 2012 WL 1397633 (E.D. La. 2012).

869 F. Supp. 2d 719 (In re Vioxx Products Liability Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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