Ontario Court Approves Settlement of PREPULSID Class Action

The Ontario Superior Court has approved an $8.75 million settlement in a class action involving Johnson & Johnson’s drug using the brand name “Prepulsid.” Prepulsid was used for the treatment of gastroesophageal reflux disease and other conditions affecting digestion, but was found to be linked to rare reports of cardiac events, including sudden death. Only 0.002% of users of the drug experienced such events, and the defendants maintain their denial of liability. The settlement agreement proposes the establishment of the $8.65 million dollar fund by the defendants, from which all eligible claims and costs will be paid. The determination of claims eligibility will be made by a six-member specialist medical panel, on these criteria: whether the claimant has experienced a death, cardiac arrest or primary tachycardic ventricular arrhythmia within 72 hours of ingesting Prepulsid. Class members will be required to submit their medical records to the panel. The number of people that will be likely be found eligible for compensation is expected to be small, with only 58 reports of serious ventricular arrhythmia received by the defendant by 2003. Only one-half the amount deemed appropriate compensation for each claimant will be paid initially, in order to ensure that sufficient funds are available, with the remaining 50% to be paid with interest after the last award is made. The defendants are entitled to any money that remains when all eligible claimants have been paid. On considering the relevant factors, Justice Strathy found that the settlement was fair, reasonable and in the best interests of the class as a whole. For the full text of the reasons for judgment in Boulanger v Johnson & Johnson Corp et al, visit: 2009 CanLII 58976 (ON S C) For the settlement web site, see: http://www.prepulsidsettlement.com./ For the reasons for judgment in the concurrent Quebec court decision in Demers v Johnson & Johnson Corp et al, visit: 2009 QCCS 4885 (Can LII) Summary by: Lea Epstein