Insurance Dispute Freezes Avandia Victims’ Fund [Video]
Lawyers.com videojournalist Matt H. Mayes from Los Angeles reports that a big pharma and insurance legal dispute was allowed to deprive innocent victims of money that they were entitled to and often desperately needed.
Tens of thousands of plaintiffs sued GlaxoSmithKline (GSK) claiming its diabetes drug, Avandia, caused serious cardiovascular side effects — including fatal heart attacks. In 2010, the pharrmaceutical giant agreed to pay hundreds of millions of dollars to settle the claims of thousands of people.
Humana, one of the nation’s the largest medical insurance companies, and GSK became involved in a federal lawsuit over insurers’ rights to be compensated for the costs of treating patients injured by Avandia. So, the victims’ settlement payments were stopped for over a year.
Attorney Shawn Khorrami, a partner at Khorrami LLP, explains his clients who included the elderly, and people in poor health, often desperately needed the money. Eventually, a highly complicated process was initiated to restart the flow of payments. However, for many victims, who died waiting for their money, it’s too late.
Attorney Paul Kiesel, a partner at Kiesel + Larson LLP questions why GSK was able to stop making all its Avandia settlement payments, when only a small percentage of the patients were even involved in Avandia and Humana’s dispute.
The U.S. Supreme Court will decide whether to take up this battle between these two corporate giants, GSK and Humana. Watch our Lawyers.com video for the full story.