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Frequently Asked Questions

Q. What is this litigation about?

A. The Plaintiffs brought claims on behalf of a nationwide class of all Third-Party Payors who purchased or paid for units of the pharmaceutical Baycol, an anti-cholesterol drug that was withdrawn from the market on August 8, 2001. The Plaintiffs claim the Defendants are liable for breach of implied warranty pursuant to Section 2-314(3) of the Uniform Commercial Code and common law principles of unjust enrichment.

The Defendants deny all of the Plaintiffs' claims and say they did not do anything wrong.

Q. Has the Court ruled on these claims?

A. Because this lawsuit is being settled, the court has not ruled on the Plaintiffs' claims against Defendants or on Defendants' defenses to those claims.

Q. Why are the parties settling?

A. The parties believe that settlement is in the best interests of the parties, due to the uncertainty, risk, cost and delay of further litigation. The Settlement is not an admission of wrongdoing by the Defendants.

Q. What is the Class definition?

A. The Class is defined as follows:

Third-Party Payors, throughout Pennsylvania and the United States (excluding all governmental entities, Defendants and Defendants' respective subsidiaries and affiliates), who have purchased Baycol, or reimbursed their beneficiaries/insureds for their purchases of Baycol, that is unusable and/or have incurred additional expenses associated with Baycol's withdrawal.

Q. How do I become a Class Member?

A. Notice of the proposed Settlement has been mailed to potential Class Members. You qualify as a Class Member if you are within the Class definition and did not previously opt out of the Class. You do not need to do anything to become a Class Member. However, if you wish to receive a cash payment under the Settlement, you must submit a Claim Form so that it is received on or before September 16, 2006 following the procedures described in the Notice.


Q. What are the core terms of the Settlement?

A. The core Settlement terms are as follows:

1. Cash Payments: Each Class Member who submits an Approved Claim shall be paid an amount determined by application of Formula A or Formula B, at the Class Member's election (the "Settlement Payment"):

i) Formula A: A Class Member who elects Formula A shall be paid one hundred fifty percent (150%) of the amount that the Class Member demonstrates was its Actual Net Cost for Baycol that was unused by its Insureds/Beneficiaries as of August 8, 2001 ("unused Baycol"). The amount of unused Baycol for each Insured/Beneficiary shall be defined as the number of tablets in an Insured's/Beneficiary's last prescription of Baycol prior to its withdrawal minus the number of days between August 8, 2001 and the date on which that prescription was filled.

ii) Formula B: A Class Member who elects Formula B shall be paid eighty-two and one half percent (82.5%) of the amount the Class Member demonstrates was its Actual Net Cost for Baycol prescriptions filled by its Insureds/Beneficiaries during the period from July 1, 2001 to August 8, 2001.
2. Scope of Release: If the Settlement is approved by the Court, this Action will be dismissed with prejudice and all of the Defendants and other Released Parties shall be released, except for their obligations under the Settlement. This means, among other things, that the Plaintiffs and Class Members will be barred by the Settlement from bringing lawsuits or claims against the Defendants and other Released Parties, whether known or unknown, whether for subrogation or otherwise, that the Plaintiffs and Class Members have now or may have in the future, related to or arising from Baycol use by their Insureds/Beneficiaries, their purchases of Baycol for such Insureds/Beneficiaries (or reimbursement for such purchases) and any costs or expenses incurred as a result of or associated with the withdrawal of Baycol from the market. The Released Claims include any present or future claims for costs of treatment of Insureds/Beneficiaries for any injury or illness allegedly attributable to their use of Baycol whether those claims have accrued or may accrue in the future and whenever such costs are incurred. The Released Claims include any claims that the Plaintiffs and Class Members have in their own right as well as any claims they have by way of assignment from their Insureds/Beneficiaries.

Q. If I am a Class Member, will I be paid as part of the Settlement?

A. If you are a Class Member and you have not opted out of the Class or previously settled with the Defendants, you may be entitled to a share of this Settlement if it receives final approval from the Court. To be entitled to a share of the Settlement, you must timely return a properly completed Claim Form with accompanying documentation to the Settlement Administrator at the proper address, via certified first-class mail, receipt return service, so that it is received no later than September 16, 2006.

Q. If I previously settled with Defendants or released Defendants in connection with a Baycol-related settlement, may I still participate in this Settlement?

A. No. Even if you come within the Class definition, you are not entitled to a share of this Settlement if you previously executed a release of Bayer and/or GlaxoSmithKline in connection with a Baycol-related settlement, or if such a release was executed on your behalf by an authorized agent.

Q. What if I do not like the terms of the Settlement?

A. If you are a Class Member and do not like the terms of the proposed Settlement, you may appear in person or by counsel at a Hearing to be held before the Honorable Mark I. Bernstein in Courtroom 246, City Hall, Philadelphia, Pennsylvania, on June 9, 2006, commencing at 9:30 a.m. to present opposition to the terms of the Settlement, provided, however, that you cannot be heard in opposition to the Settlement unless, on or before May 17, 2006, you: (a) have filed with the Prothonotary of the Court a notice of your intention to appear together with a statement that indicates the basis of your opposition, along with any supporting documentation including evidence that you are a Member of the Class; and (b) have served copies of such notice, statement and documentation, together with copies of any other papers or briefs which you file with the Court, to the counsel specified in the Notice of Proposed Settlement. If the Court rules that the proposed Settlement is fair, reasonable and adequate to the Class and you have not previously opted out, you will be bound by the terms of the Settlement.

Q. If I do not want to participate in the Settlement, how do I get out of the Class?

A. The deadline to opt out of the Class (October 15, 2005) has already passed. Although you may do so, you are not required to file a claim for cash benefits. If you do nothing, you will not receive a settlement payment and you will be bound by any final judgment approving the Settlement.

Q. Can I hire my own attorney?

A. Yes, but it will be at your own cost.

Q. Who represents me?

A. The Court has appointed the following counsel to represent the Class Members in this litigation: Chimicles & Tikellis LLP; Cohen, Placitella & Roth, P.C.; Labaton Sucharow & Rudolph LLP; and Miller Faucher and Cafferty LLP.

Q. Will Plaintiffs' Attorneys collect any fees or expenses from me?

A. No. Counsel for the Class in this lawsuit will apply to the Court for an award of attorneys' fees not to exceed $1.5 million, unless Approved Claims exceed $5 million in the aggregate. If Approved Claims exceed $5 million, the Attorneys' Fees Cap shall be increased by twenty percent (20%) of the amount by which Approved Claims exceed $5 million, but in no event shall Defendants be required to pay more than $3 million in fees to Class Counsel. These fees are to be paid by the Defendants and not by you. The attorneys' fees and reimbursement of expenses, as awarded by the Court, shall be paid by the Defendants without depleting the Settlement payments to be made to the Class Members, and without diminishing any other payment owed by the Defendants under the terms of the Settlement Agreement.

Q. Do I have to pay anything to participate in the Settlement?

A. No. To participate in the Settlement if it is approved by the Court, you need only return a completed, properly prepared and signed Claim Form with supporting documentation so that it is received on or before September 16, 2006, following the procedures described in the Notice.

Q. What happens if I do nothing?

A. Although you may do so, you are not required to file a claim for cash benefits. If you do nothing, you will not receive a settlement payment and you will be bound by any final judgment approving the Settlement.

Q. What is the Settlement Hearing?

A. It is a hearing that is currently scheduled for June 9, 2006 at 9:30 a.m. in Courtroom 246, at which time the Court of Common Pleas, Philadelphia County, Pennsylvania, will review the evidence presented by the parties about the Settlement terms and the administration of the Settlement to determine whether the Settlement will be fair to all Class Members. If the Court determines that the Settlement is fair, it will enter a Final Order implementing the Settlement, and all Class Members who did not request to be excluded from the Class will be bound by the terms of the Settlement.

Q. What is a Class Action?

A. A class action is a procedural device by which a court appoints representative plaintiffs and class counsel to represent a group of similarly-situated persons (the class), and to bind them to a court judgment in a single proceeding.

Q. I have moved and want to give you my change of address or I need you to send my settlement check to a different address than the one listed on my claim form. What should I do?

A. Please send a written change of address request to the Settlement Administrator at the following address: Pennsylvania Baycol Third-Party Payor Litigation Settlement, P.O. Box 9000, #6386, Merrick, New York, 11566-9000. Please include your full name, current address, former address and a daytime telephone number. The parties will verify your eligibility as a Class Member and update their records appropriately.

Q. Who can I contact if I have further questions?

A. The Settlement Agreement and Notice may be viewed on the website, www.pennsylvaniabaycolthirdpartypayorlitigation.com. Many common questions can also be answered by calling the Settlement Helpline at (800) 283-9804. You may also write to Plaintiffs' Class Counsel with your further questions through the Settlement Administrator at:

Pennsylvania Baycol Third-Party Payor
Litigation Settlement
c/o The Garden City Group, Inc.
P.O. Box 9000 #6386
Merrick, NY 11566-9000