$2.2 Billion Zantac Settlement Breakdown
What You Need to Know – Zantac Settlement Update
In a major development for one of the largest pharmaceutical litigations in recent history, GlaxoSmithKline (GSK) has agreed to pay up to $2.2 billion to settle approximately 80,000 state court lawsuits related to claims that its former heartburn medication, Zantac, caused cancer. by Attorney Jeff Keiser.
The $2.2 Billion Settlement: A Breakdown
The $2.2 billion settlement aims to cover about 93% of the state court lawsuits filed against GSK. These lawsuits centered on allegations that ranitidine, the active ingredient in Zantac, formed NDMA, a probable carcinogen, in the body under certain conditions, leading to cancer risks for long-term users.
While GSK maintains that there is no conclusive scientific evidence linking Zantac to cancer, the company chose to settle in order to avoid prolonged litigation and the unpredictability of jury trials.
The average payout per plaintiff from this settlement, based on the 80,000 lawsuits, has been estimated at $27,500, though the actual amounts will vary depending on the severity of the claim and individual circumstances, with many plaintiffs likely to receive much more.
This falls in line with the Sanofi settlement from earlier this year, where the average settlement, based only on the number of plaintiffs, was $25,000.
“The costs of these settlements will be funded through existing resources,” GSK explained. “There are no changes to GSK’s growth agenda or investment plans for R&D as a result of these settlements.” Once all administrative details are completed, payments should begin in late 2024 or early 2025, although this is not an official timeline and could vary depending on future developments.
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Additional Settlements: Qui Tam and Other Manufacturers
In addition to the $2.2 billion agreement, GSK also settled a $70 million ‘qui tam’ lawsuit with Valisure, a Connecticut-based laboratory that initially discovered high levels of NDMA in Zantac samples. This settlement, pending approval by the U.S. Department of Justice, stems from whistleblower claims brought by the lab.
What Cases Remain?
Federal Multidistrict Litigation (MDL): In December 2022, a federal judge dismissed thousands of claims in the consolidated Zantac MDL, ruling that the plaintiffs had not provided reliable evidence linking ranitidine to cancer. However, appeals are possible, and new claims may still be filed.
Unsettled State Lawsuits: Around 7% of state court lawsuits have not been settled under the current GSK agreement, leaving room for additional trials or settlements in states such as California and Illinois.
Class Action Lawsuits: Plaintiffs in class action lawsuits are seeking compensation for economic losses. These claims argue that consumers would not have purchased Zantac had they known about the potential cancer risk. These cases may continue even after personal injury claims are resolved.
Future Claims: Individuals who have not yet come forward may still file claims if they develop cancer or other health conditions that they believe are linked to Zantac use. Wrongful death lawsuits brought by family members of deceased Zantac users may also emerge.
The Path Ahead
Boehringer Ingelheim (BI) isn’t off the hook yet. BI acquired the OTC rights for Zantac in 2006 and continues to face litigation. Despite being involved in Zantac’s distribution, BI has not yet settled many of the claims against it and is preparing for more trials.
Like GSK, Sanofi, and Pfizer, BI has asserted that there is no conclusive scientific evidence linking ranitidine (the active ingredient in Zantac) to cancer. Despite a December 2022 federal ruling that favored defendants, BI, along with other pharmaceutical companies, is expected to face further litigation and potentially costly settlements as cases proceed, especially in jurisdictions like Delaware where the courts have thus far allowed expert testimony on the cancer risks to be heard.
Conclusion
For law firms specializing in mass torts and pharmaceutical litigation, the Zantac cases represent both a significant legal victory for plaintiffs and a potential template for future litigation involving drug safety. As these cases unfold, legal teams will continue to play a crucial role in helping affected individuals seek justice and compensation.
While the $2.2 billion settlement represents a major milestone in the Zantac litigation, numerous legal battles remain, and the pharmaceutical industry is watching closely. Plaintiffs and attorneys involved in mass torts should be prepared for ongoing developments as this case continues to evolve.
For more information on how your legal team can navigate pharmaceutical lawsuits and mass torts, reach out to us for expert consultation and support.
Craig H. Alinder, Vice President