Squabble Over Mich. Drug Law Intensifies After Vioxx Settlement

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More than 1,000 Michigan residents could end up getting part of a $4.85 billion national settlement if they or their loved ones took the painkiller Vioxx.

But that hasn’t squelched a firestorm over the state’s unique 1995 law shielding pharmaceutical makers from product liability lawsuits over drugs such as Vioxx.

Michigan’s law is the toughest in the country, allowing legal damages only if plaintiffs prove a company withheld or misrepresented information about a drug that would cause the Food and Drug Administration to not give or to withdraw its approval.

That law seemed to pose an insurmountable barrier for Michigan residents who wanted to file claims that Vioxx had harmed them or a family member. But some took a chance on suing Vioxx manufacturer Merck & Co. in Merck’s home state of New Jersey.

A New Jersey judge decided not to toss out the lawsuits, keeping their cases alive and enabling them to join the settlement, assuming certain conditions are met. If the Michigan residents don’t like the settlement and want to continue in court, though, they’re out of luck.

That’s because the New Jersey Supreme Court ruled 5-2 earlier this year that Michigan’s drug immunity law applied to a Michigan resident who sued another New Jersey-based drug manufacturer because he said the acne medicine Accutane caused him to become suicidal.

The court decision leaves Michigan residents stuck living under Michigan’s law, regardless of what other states are doing.

“Michigan’s interest in promoting the availability of affordable prescription medications to its citizens outweighs New Jersey’s interest in deterring New Jersey corporations from providing inadequate warnings,” the court majority said.

Other state and federal courts have made similar decisions applying Michigan law to Michigan residents who sue drug makers out of state.

That’s one reason Democratic lawmakers in Michigan are so intent on getting the law changed. The Democratic-majority House has passed a measure repealing the law, but the GOP-controlled Senate has not taken it up.

The state law is favored by business groups and Republicans who say companies need protection from greedy trial lawyers who file exorbitant lawsuits.

They add that lawsuits discourage companies from creating new drugs for society’s benefits.

Those who want the law overturned say legal action gets drug makers’ attention and helps to compensate the injured or their families.

Democrats who want to get rid of the law have said Michigan residents will be left out of the Vioxx settlement. Merck officials say that isn’t true, as long as the residents had cases pending before the settlement was announced Nov. 9.

“Under the agreement, Michigan consumers have the same rights as those who live in other states,” said Merck legal spokesman Ted Mayer. “There is nothing in the Michigan statute that prevents them from participating in the settlement agreed to several weeks ago.”