Lieff Cabraser: Consumer Law Newsletter Issue No. 4

Consumer Law Newsletter:
Issue No. 4

January 25, 2001

Highlights

Lawsuit filed against Sulzer Medica for Allegedly Defective Hip Implant
$105 Million Settlement Announced in Providian Credit Card Litigation
Final Approval Given to Weyerhaeuser Hardboard Siding Settlement

Lawsuit filed against Sulzer Medica for Allegedly Defective Hip Implant

On January 19, 2001, on behalf of Plaintiff Rhonda Silva, Lieff Cabraser filed a lawsuit against Sulzer Medica and other companies, including its subsidiary Sulzer Orthopedics, Inc., arising out of the marketing and sale of the Sulzer Inter-Op Acetabular Shell used in hip replacement surgery. On December 8, 2000, Sulzer issued a recall of approximately 17,500 Inter-Op Acetabular Shells. The shells were primarily sold in the U.S. after October, 1999, with a small number of lots sold after July, 1997.

Ms. Silva, who was recently interviewed on a CNN program concerning the Sulzer recall, alleges that the shells were defectively manufactured in that a lubricant used in the manufacturing process was inadequately washed from the shell surface. This defect prevented Ms. Silva's hip bone from properly bonding with the shell, causing the loosening of the hip joint and resulting in severe pain and the need for further surgeries to replace the defective hip implants.

Lieff Cabraser is actively representing other persons who received the recalled Sulzer hip implants. For more information on the recall, including the proposed Sulzer settlement, and why Lieff Cabraser believes it is flawed, please visit HipImplantLaw.com.

$105 Million Settlement Announced in Providian Credit Card Litigation

On December 28, 2000, Lieff Cabraser announced that Providian Financial Corporation agreed to pay $105 million to settle allegations by Providian credit cardholders that it engaged in unlawful business practices affecting consumer credit accounts. This settlement is in addition to the June 2000 settlement by Providian with federal and state officials for an estimated $300 million to pay for allegedly deceiving customers about its rates and fees.

Lieff Cabraser serves as co-lead counsel on behalf of Providian credit cardholders nationwide in this litigation. Cardholders alleged that Providian violated consumer protection and other laws in connection with the marketing and sale of Providian's add-on products, including Credit Protection, PricePro, Drive Pro, HealthPro, and credit line increases. The settlement with cardholders, which is subject to court approval, was reached following almost two years of litigation and nine months of mediation. Lieff Cabraser anticipates that class members will be notified of the terms of the settlement in the spring of 2001.

Final Approval Given to Weyerhaeuser Hardboard Siding Settlement

On December 22, 2000, the Honorable Alfred G. Chiantelli of San Francisco Superior Court granted final approval to a settlement of a nationwide class-action lawsuit against Weyerhaeuser Company by consumers with Weyerhaeuser hardboard siding installed on their structures from January 1, 1981 to December 13, 1999. Plaintiffs alleged that the siding was inherently defective and prematurely failed when exposed to normal weather conditions.

Under the terms of the settlement, Weyerhaeuser has agreed to pay all timely, qualified claims made during a nine year claims program. There is no cap on Weyerhaeuser's potential total liability. Commenting on the settlement, Lieff Cabraser partner Jonathan D. Selbin observed, "The settlement provides real and immediate relief to homeowners with failing siding in a fair and efficient manner."