Serostim Settlement

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Summary of the Settlement

IMPORTANT DATES & DEADLINES
Class Period:	July 1, 1995 to December 31, 2006
Status Conference:	June 19, 2007
Fairness Hearing:	December 6, 2007 *PLEASE NOTE: On December 12, 2007 the Court issued final approval for the settlement. The Claims Administrator distributed settlement checks to Consumers on March 5, 2008 and anticipates distributing settlement checks to Third Party Payors during the summer of 2008.
IMPORTANT CONSUMER DATES & DEADLINES
Request for Exclusion:	Postmarked by September 27, 2007 *PLEASE NOTE: Exclusions may no longer be filed because the deadline has passed.
File an Objection:	Postmarked by September 27, 2007 **PLEASE NOTE:* Objections may no longer be filed because the deadline has passed.
Filing a Claim:	Postmarked by September 27, 2007 **PLEASE NOTE:* The Deadline for Filing Claims has passed. At this time, Consumer Claims are no longer being accepted.
IMPORTANT TPP DATES & DEADLINES
Request for Exclusion:	May 21, 2007 *PLEASE NOTE: Exclusions may no longer be filed because the deadline has passed.
File an Objection:	May 21, 2007 *PLEASE NOTE: Objections may no longer be filed because the deadline has passed.
Filing a Claim:	Postmarked by July 19, 2007 *PLEASE NOTE: The Deadline for Filing Claims has passed. If you would like to file a claim, you are still urged to do so. However it is up to the Court’s discretion to permit payment of claims received after the Deadline for Filing Claims.

On December 12, 2007 the Court issued final approval for the settlement. The Settlement with Defendants Merck Serono International, S.A., Serono Laboratories, Inc., and EMD Serono, Inc. (“Serono Defendants”), in two consolidated class action lawsuits in the U.S. District Court for the District of Massachusetts. (In January 2007, Serono International S.A. changed its name to Merck Serono International S.A., and Serono Inc. changed its name to EMD Serono, Inc.) The Claims Administrator distributed settlement checks to Consumers on March 5, 2008 and anticipates distributing settlement checks to Third Party Payors during the summer of 2008.

The lawsuits involve the drug Serostim. Serostim is a growth hormone approved by the FDA to treat HIV/AIDS patients with wasting or cachexia. The lawsuits claim that the Serono Defendants encouraged doctors to prescribe Serostim based on diagnostic criteria that were not approved by the FDA, and for purposes other than those indicated. The Serono Defendants denied these claims and any liability. The Serono Defendants have many defenses to these claims, and have entered into the Settlement solely to avoid the further expense, inconvenience, burden, and uncertainty of these lawsuits.

Of the total settlement amount of $24 million, $21.6 million was allocated to claims submitted by third-party payors, such as insurance companies and workplace-based health plans; and $2.4 million will be allocated to claims by consumers. After deducting attorneys’ fees and costs of administering the Proposed Settlement, the funds allocated to consumers will be distributed in cash to consumers who: (a) paid for all or part of the cost of the drug, and (b) submit a valid claim form, and the balance, net of attorneys’ fees and the costs of administering the Proposed Settlement, will be distributed to third-party payors who made payments for Serostim.

The names of the lawsuits are Government Employees Hospital Association, et al. v. Serono International, S.A., Serono Laboratories, Inc., Serono, Inc., RJL Systems, Inc., and Rudolph J. Liedtke, C.A. No. 05-cv-11935 (PBS) (D. Mass.), and Eugene Francis v. Serono Laboratories, Inc., Serono, Inc., RJL Systems, Inc., and Rudolph J. Liedtke, C.A. No. 06-cv-10613 (PBS) (D. Mass.).