In re Zyprexa Products Liability Litigation
United States District Court for the Eastern District of New York
424 F. Supp. 2d 488 (2006)
- Written by Angela Patrick, JD
Facts
The parties in a multidistrict litigation (MDL) about the drug Zyprexa reached a proposed settlement of 8,000 claims. Under the settlement, each plaintiff qualified for either a simple $5,000 payment or higher payments determined by a more complex process. At the MDL court’s request, the parties worked with special masters and proposed an attorney’s-fee payment system for the settlement. For the simple $5,000 payment, a plaintiff’s attorney could recover up to 20 percent of the plaintiff’s payment as fees. For the more complex payment process, the attorney could recover up to 37.5 percent of the remaining amount for fees. These numbers represented caps on fees and did not change any prior agreement between the plaintiff and the attorney to pay the attorneys a smaller amount. The fee system was submitted to the MDL court for approval.
Rule of Law
Issue
Holding and Reasoning (Weinstein, J.)
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