Sponsored by
Associated Press
  •  

Ahead of the Bell: Drug and device lawsuits

By Associated Press May 14, 2008 Comments (0)

0 Recommendations

Doctors, lawyers and a movie star are expected to criticize government regulations Wednesday that have shielded drug and medical device companies from lawsuits brought by patients.

For decades consumers who felt they had been injured by a drug or device have used state laws to sue companies for damages. But in 2006 the Food and Drug Administration said any product that meets its standards for approval is not subject to state liability laws.

The Supreme Court and others are still grappling with the issue, but consumer advocates fear rulings that favor federal rules could make it more difficult for patients to sue drugmakers _ potentially saving those companies billions of dollars.

More than a half dozen witnesses are expected to testify on the issue at a 10 a.m. hearing before the House Committee on Oversight, chaired by Rep. Henry Waxman, D-Calif.

Film actor Dennis Quaid is expected to join the usual lineup of medical, regulatory and legal experts. Quaid and his wife, Kimberly, are suing Deerfield, Ill.-based Baxter Healthcare Corp. for putting vastly different doses of a blood-thinner into confusingly similar packages.

The Quaids allege that their infant twins were given 2,000 times more blood thinner than prescribed because of Baxter's packaging. The massive overdose caused the twins' blood to thin to dangerous levels, though both made a full recovery.

Lawmakers will hear from former FDA Commissioner David Kessler and New England Journal of Medicine Editor Gregory Curfman. No company representatives are scheduled to testify.

Earlier this year the Supreme Court left in place a ruling favoring patient lawsuits in a case against Pfizer subsidiary Warner Lambert. Patients who used its diabetes drug Rezulin had sued the company for allegedly misleading FDA about its risks. The court was split over whether FDA regulations should overrule state liability laws, upholding a lower court decision that favored the patients.

But in February justices ruled in a case against Medtronic Inc. that federal rules pre-empt lawsuits in state courts against medical device manufacturers.

Waxman and Rep. Frank Pallone, D-N.J., have drafted legislation that would effectively nullify that decision, allowing consumers to seek damages from device makers. A spokesman for Pallone said the bill will be introduced in the coming weeks.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 644493, ~/articles/articlehandler.aspx, 7/5/2008 5:56:33 PM, No ticker

FREE 1-Step Fool.com Access!

Already registered? Login Here

Simply enter your email address below to get:

  • Instant access to this article and all in-depth Motley Fool news and analysis.
  • A FREE special report, "The Motley Fool's Top Two Picks," immediately sent to your inbox. Inside you'll read about the Fool's two best plays for new money in 2008 — this report is free for a limited time.

No, thanks

Related Tickers

Baxter International, Inc.

BAX Up! $64.12 +0.29 (+0.45%) 1:00 PM
CAPS Rating:
289 Outperforms
21 Underperforms
Rate This Stock

Major Indices

S&P 5001,262.90+0.11%
DJIA11,288.54+0.65%
RSL 2K665.78 -0.98%
NASD2,245.38 -0.27%
Updated: 1:04:33 PM
Sponsored by:

The Motley Poll

Will the U.S. economy fall into recession?

Sponsored by: