Posted On: July 4, 2010 by Carey, Danis & Lowe, L.L.C.

Paxil - GSK Settles

Isn’t it nice to see the system work and make things better? Eight months ago, Glaxo Smith Kline (GSK) lost its first test case to defend the company’s flagship antidepressant, Paxil, against allegations the medicine causes severe birth defects. In that case, the jury awarded a stunning $2.5 million settlement. Now with the number of cases steadily increasing, the makers of Paxil have decided to stop fighting the matter and settled nearly 200 of the pending cases out of court.

According to representatives of both GSK and the plaintiffs, the terms of the settlement are and will remain confidential.

Plaintiff liaison Jamie Sheller commented, "When you're dealing with children, with birth defects, that's a concern for any company," according to Law.com. "GSK gave it their all at that trial. ... Despite that, the plaintiffs were successful in the case and that set a tone for their analysis. Even though they mounted an excellent and strong defense, they weren't able to overcome the plaintiffs' position."

GSK has said that while it stands by the efficacy of the antidepressant, the company elected to settle the matter out of court in order to avoid the uncertainties and costs that come with a major litigation. According to Law.com, the spokesman for GSK was quoted as saying that plaintiffs and defendants had actually begun working actively together to resolve the matter, and there was not a great deal of animosity on the part of either party.

The first successful suit, known as the Kilker case, has been described as a cathartic experience that allowed the public and relevant litigators to see just how intense the feelings and legal matters of the cases were, and contributed greatly to GSK's decision to settle rather than continue to fight the cases. While there are still some cases pending, it is clear that GSK has shown willingness to accommodate the position of the plaintiffs.