Advertisement

U.S. Judge OKs $4.25-Billion Breast Implant Settlement : Law: Pact is largest product-liability agreement in American history. Critics say there isn’t enough money to pay thousands of claims.

Share via
From Associated Press

A judge granted final approval Thursday to a $4.25-billion pact between women and makers of breast implants, the largest product-liability settlement in U.S. history.

The decision by U.S. District Judge Sam Pointer cleared the way for court-appointed administrators to begin determining whether there is enough money to pay the claims of thousands of women.

For the record:

12:00 a.m. Sept. 3, 1994 For the Record
Los Angeles Times Saturday September 3, 1994 Home Edition Part A Page 4 Column 3 National Desk 1 inches; 32 words Type of Material: Correction
Implant Settlement--A graphic in Friday’s Times misstated the amount Applied Silicone Corp. will contribute to the $4.25-billion breast implant settlement approved in federal court. The firm’s contribution is $250,000.

Critics contend that as much as $200 billion is needed to adequately compensate implant recipients.

Advertisement

“I don’t think that anyone at this point thinks the $4.25 billion is going to be enough, me included,” said Ralph Knowles, an attorney who negotiated on behalf of the women.

The agreement involves nearly 60 companies that manufactured implants or components of implants. Dow Corning Corp. agreed to pay $2 billion, the largest share of the agreement. The companies admitted no wrongdoing.

Under the order, the companies must make initial payments of more than $900 million in mid-October, provided no appeals are filed.

Advertisement

Attorneys for women in other countries objected to the implant settlement, claiming too little money was set aside for them. In answer to those objections, Pointer increased the amount of money set aside for foreign women from about $81 million to $96.6 million.

Under the order, U.S. women with certain diseases will get payments ranging from $105,000 to $1.4 million, depending on their age and health. Foreign women will get 40% to 90% of the amounts granted U.S. women, depending on where they live.

More than 90,500 women have made claims, including 500 from other countries.

About 15,000 women, including about half of those living outside the United States, have already rejected the pact.

Advertisement

Payments could be reduced if officials determine there is not enough money to cover all the claims. Women would have a chance to reject the settlement and pursue individual lawsuits if that occurred.

The settlement was reached in April after nearly two years of negotiations between women’s attorneys and U.S. implant manufacturers.

The largest previous product-liability settlement was a $3-billion trust established by the Manville Corp. to pay claims stemming from exposure to asbestos.

“We are pleased the proposed global settlement has moved to this next step and that the court has ruled positively as to the fairness of the settlement,” Dow Corning spokesman Michael Jackson said from company headquarters in Midland, Mich.

But implant recipient Barbara Herzog of Lakeview, Pa., said she wants more than a check.

*

“They have made nothing remotely resembling an apology. Women would still like that very much,” Herzog said.

Gail Armstrong, a spokeswoman for the National Breast Implant Plaintiffs’ Coalition, said members are watching to see if the judge follows through on promises to keep lawyers’ fees and administrative costs at $1 billion. Pointer also has said he wanted the sickest women to get money first.

Advertisement

“If he does those two things, he will historically change the way class actions are perceived,” Armstrong said.

Women face a Sept. 16 deadline for applying to be in the first wave of payments, which could be made as early as next spring. Pointer gave them an additional month, until Oct. 17, to file medical documents supporting their claims.

Payments by Major Companies

The $4.25-billion breast implant settlement approved Thursday calls on the former major manufacturers of the silicone devices to contribute the following sums:

Dow Corning: $2.02 billion

Medical Engineering/Bristol-Myers Squibb: $1.15 billion

Baxter Healthcare/Baxter International: $555.79 million

Minnesota Mining & Manufacturing Co.: $325 million

Applied Silicone Corp.: $250 million

Union Carbide Corp.: $138 million

McGhan Medical Corp.: $25 million

Wilshire Technologies Inc.: $8 million Source: Reuters

Advertisement