In re Vioxx Products Liability Litigation

Thousands of lawsuits were filed in federal and state courts against pharmaceutical company Merck (defendant) for issues relating to Merck’s drug, Vioxx, after studies revealed that using Vioxx increased the risk of blood clots, heart attacks, and strokes. The federal cases were consolidated in a multidistrict litigation (MDL) in the Eastern District of Louisiana. In November 2007, the parties announced that they had reached a settlement agreement that contemplated the creation of a global $4.85 billion settlement fund and a settlement program to process plaintiffs’ claims and distribute the funds. By June 2010, over $4.35 billion had been distributed to roughly 33,000 claimants. The district court praised counsels’ unprecedented efficiency and professionalism in arranging the settlement program and distributing the funds. The court determined that the attorneys who had performed work for the common benefit of the Vioxx plaintiffs were entitled to share 6.5 percent of the total settlement—approximately $315 million. The court appointed a fee-allocation committee (FAC) that obtained evidence supporting the fee requests from each attorney and law firm that had performed common-benefit work. Among other things, the FAC (1) obtained three-page written affidavits detailing each attorney’s or firm’s specific contributions to the outcome of the litigation and (2) held in-person, on-the-record meetings at which counsel could appear to argue for their entitlement to fees. The FAC then recommended how the fees should be allocated among the attorneys who had performed the common-benefit work. Some attorneys objected to the FAC’s recommended allocation, and the court appointed a special master to resolve the dispute and prepare an independent recommendation regarding fee allocation. The court then considered the recommendations and issued an allocation decision.