Wyeth reaches new settlement deal for diet drugs

Wyeth and lawyers for former diet drug users have reached a new agreement for compensation of alleged medical harm under their national class-action settlement, as reported in The New York Times and Yahoo Finance.

The latest agreement is the seventh proposed amendment to the settlement reached in 1999 over the diet drugs. The proposal, which requires the approval of a federal judge, "would affect 41,600 former users of the diet drugs Pondimin and Redux who suffered moderate heart valve damage," as reported in The New York Times.

Wyeth will need to add $1.275 billion to the $3.75 billion trust fund set up to cover the settlement. Wyeth has reserved $16.6 billion to cover the trust fund as well as legal fees, jury awards and out-of-court settlements, including lung damage cases.

Analysts have voiced concern that if Wyeth is engaged in long-running litigation, the drugmaker could go bankrupt. The drugmaker is currently appealing a $1-billion jury award in a Texas case, as reported in The New York Times.

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