ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, August 15, 1996 TAG: 9608150078
SECTION: NATIONAL/INTERNATIONAL PAGE: A-2 EDITION: NEW RIVER VALLEY
DATELINE: CHICAGO
SOURCE: Associated Press
Hemophiliacs who claim they contracted the virus that causes AIDS from tainted blood-clotting products could get $100,000 each under a settlement offer approved by a federal judge Wednesday.
The $640 million offer from four major drug companies also would cover survivors of hemophiliacs who died of AIDS, as well as family members and others who have contracted HIV from a person with hemophilia.
The deal involves only products sold between 1979 and 1985 - before the companies say reliable AIDS-killing treatments became available.
Hemophiliac groups contend the companies purposely failed to protect them by refusing to treat the products with heat that would kill the virus, and by manufacturing the products from blood taken from people at high risk for AIDS, such as drug abusers.
In the decade since the contamination became known, more than 4,500 hemophiliacs have died from AIDS. And both sides estimate the number of people eligible for the settlement at 5,000 to 6,000.
Although some advocates for hemophiliacs contend the offer is inadequate, U.S. District Judge John Grady said it ``has sufficient earmarks of fairness.''
David Shrager, lead attorney for the hemophiliacs, said the settlement probably is the only way many of them can get compensation.
Most who have sued the drug companies in the past have lost their cases. Those who have won had their victories overturned later on appeal. Individual suits by about 800 people remain pending.
The judge set a Nov. 25 hearing to hear from those affected by the settlement.
The four drug companies involved in the case are Germany's Bayer AG; Baxter International Inc., of Deerfield, Ill.; the Armour Pharmaceuticals division of French-owned Rhone-Poulenc Rorer; and Alpha Therapeutic Corp., a division of Japan's Green Cross Corp.
``This is an effort to resolve litigation and to improve and enhance the relationship with our customers,'' said Phil Beck, the attorney for Alpha Therapeutic Corp. ``The settlement is fair and reasonable and in the best interests of the companies and the plaintiffs.''
Terms of the settlement say $600 million will be distributed to victims, and $40 million will pay for expenses and lawyers fees in the decade-long litigation.
Notices will be sent next week to those affected by the settlement. They will have until Oct. 15 to notify the court whether they will accept the offer. If they reject it, they will have the option to sue the drug companies.
The drug companies admit no guilt with the agreement and have the option of dropping the offer if too many people reject it, Beck said.
LENGTH: Medium: 57 linesby CNB