BOSTON – United States District Court Judge, William G. Young, last week granted preliminary approval of a proposed settlement between GlaxoSmithKline PLC (NYSE: GSK), SmithKline Beecham Corporation (NYSE: SBH), Beecham Group PLC, and SmithKline Beecham PLC, and a class of consumers and third-party payors who purchased the prescription drug Relafena.

The suit, comprised of many federal cases consolidated in United States District Court in Massachusetts, alleged that Relafen's distributors unlawfully obtained a patent which allowed them to enforce a monopoly over Relafen and prevent competition by generic prescription drugs. The suit contended that this conduct resulted in consumers and payors paying exorbitant prices for Relafen.

According to Tom Sobol, co-lead counsel for the plaintiffs, the settlement is equitable compensation for consumers who were damaged by the company's business practices.

"We feel that this settlement is a big victory for consumers of Relafen," said Sobol. "We hope that this litigation sparks reform in how other drug companies deal with consumers."

Under the terms of the settlement, class members will be paid up to $75 million on behalf of the defendants. Third-party payors will receive $50 million of the settlement fund, while individual class members will receive $25 million for damages and fees. Class members' portion of the settlement will be determined based on the state in which Relafen or its generic alternative was purchased.

The class includes all persons or entities who purchased Relafen or its generic alternative, nabumetone, from September 1, 1998 to June 30, 2003. Class members will be notified of their eligibility and will have the option to file a settlement claim or dismiss themselves from the suit.

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