Actos Settlement Agreement

A committee of bargaining lawyers and Takeda have negotiated an agreement that includes a transaction program (the “Actos Resolution Program” or “Program”) to resolve claims related to bladder cancer injury as a result of the use of Actos. The program is open to cliamantes who (a) report having bladder cancer; (b) used Actos for the first time before 1 December 2011; and c) either have a known legal remedy, or appoint a lawyer to assert a right within 3 days of the announcement of the transaction (i.e. until Friday noon EDT on Friday, May 1, 2015). The deal will be effective if 95 percent of the plaintiffs agree, in which case Takeda would pay $2.37 billion. If that figure reaches 97 percent of plaintiffs, Takeda will pay $2.4 billion. Other actos® cases were resolved after Takedas` decision to make comparisons of the mass infringement. In October 2015, Takeda moved to settle two claims. A confidential settlement has been reached in a Nevada case about a man who died of bladder cancer, and $2 million has been awarded to a cancer patient in a Pennsylvania court. Among those eligible for comparative payments were those who claimed to have bladder cancer and were using Actos for the first time before December 1, 2011, when the FDA ordered Takeda to update the drug`s label.

Peter Flowers, a Chicago attorney who has represented a few plaintiffs in Illinois state courts, said he believes the transaction is the largest for a drug that remains on the market. Many of these cases went to Illinois because Takeda`s U.S. operations reside there. Bloomberg first reported on the outstanding amount of the transaction. In April 2015, a global comparison was conducted to resolve more than 8,000 Actos complaints for bladder cancer caused by the popular diabetes drug. The drugmaker agreed to pay $2.4 billion to settle the dispute. The $2.37 billion deal is expected to provide for an average payment of about $296,000 per case for people with bladder cancer. However, individual distinctions may be reduced due to the age of the user, exposure to other carcinogenic toxins, and the history of the smoke. This amount is expected to reach $2.4 billion if 97% of authorized applicants participate. When announcing its settlement plans, Takeda said the company would resolve seven of the nine cases previously pending, which were at different stages of the appeal process.

At that time, the deal was one of the largest Big Pharma colonies in U.S. history. The transaction amount will increase from $2.37 billion to $2.4 billion, as the percentage of applicants who chose to participate exceeded 97% before the opt-in deadline of September 11, 2015. Average payments of about $250,000 per person are increased for more serious injuries, and reductions will occur if a person had other probable causes of bladder cancer such as smoking. These include persons who have been the subject of ongoing legal proceedings and those who, within three days from the date of the announcement of the settlement, have appointed a lawyer to assert a right. . . .