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THE OTHER SIDE OF THE VIOXX VERDICT |
FOR IMMEDIATE RELEASE
Contact: Alex Winslow
512-381-1111
August 22, 2005
THE OTHER SIDE OF THE VIOXX VERDICT
Special interest Texas law trumps citizen juries; Wrongdoers reap windfall
Consumer group calls for change in punitive damages law to help children’s health care
Last week, a jury in Angleton , Texas found that the drug Vioxx led to the death of a Texas man named Robert Ernst -- and that the drug company knew the drug was harmful. As a result of 15-plus years of pro-defendant legal changes, this decision will be virtually meaningless.
“A panel of independent citizens found that corporate wrongdoers who put individuals at risk -- like the makers of Vioxx -- should be held accountable,” said Alex Winslow, Executive Director of the non-partisan consumer organization, Texas Watch. “Unfortunately, the legal changes that were passed under the guise of so-called tort ‘reform’ and a Texas Supreme Court beholden to corporate interests have rendered jury verdicts virtually meaningless.”
Despite the Angleton jury’s intention to severely punish Merck & Co. for its actions, Texas law protects wrongdoers by drastically limiting the punitive damage assessment. Punitive damages should be stiff enough to serve as a deterrent to companies who are considering marketing a dangerous product.
Vioxx had annual sales of roughly $2.5 billion when the drug was found to be dangerously defective. Under Texas law, Merck can be forced to pay no more than $26.1 million, amounting to only about 1% of Vioxx’s annual sales.
In 2001, Merck estimated that it would make a $229 million windfall if it could delay an FDA warning about the danger of Vioxx. Under Texas ’ arbitrary political computation Merck will be rewarded for its deception by requiring the company to pay only pennies on the dollar.
Winslow suggested that lawmakers should change the law so that jury assessments above the arbitrary legislative formula go to the state to help pay for health insurance for working families. In the Vioxx case, that would amount to roughly $200 million. That money would enable lawmakers to completely restore deep cuts in the children’s health insurance plan (CHIP).
“Instead of letting Vioxx makers escape responsibility, lawmakers should force these wrongdoers to improve public health for our children – that would be real tort reform,” said Winslow. “Two hundred million dollars would go a long way toward ensuring that all Texas children have access to health care.”
The law in Texas gives wrongdoers an incentive to take cases like Vioxx to trial rather than settling out of court. This practice increases the burden not only on the victims and their families, but also on taxpayers.
“Lawmakers claim to support greater judicial efficiency, but the reality is that these laws are designed to protect big drug companies and insurance lobbyists – not taxpayers or victims,” said Winslow.
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