Lieff Cabraser: Consumer Law Newsletter Issue No. 10

Consumer Law Newsletter:
Issue No. 10

December 11, 2002

Top News

U.S. Consumer Product Safety Commission Issues Holiday Toy Recall List
Tennessee Court Issues Class Certification Order In Tri-State Crematory Case
Pharmaceutical Companies Charged with Inflating Prices of Prescription Drugs
Baycol Recall Litigation Update
Claims Process Underway In Billion Dollar Plus Sulzer Hip And Knee Implant Recall Settlement

Introduction

The Consumer Law Newsletter is published quarterly by the national law firm of Lieff Cabraser Heimann & Bernstein, LLP. It is sent to persons who have contacted our firm via the internet and provided their e-mail address. We do not share e-mail addresses with any third party.

Top News

U.S. Consumer Product Safety Commission Issues Holiday Toy Recall List

The U.S. Consumer Product Safety Commission (CPSC) at www.cpsc.gov is alerting consumers that they may have bought children's items earlier this year as gifts for the holiday season that have since been recalled. On November 2, 2002, the CPSC announced a list of some of the Commission's largest recalls of children's products over the past year which included the following toys:

Gearbox Pedal Cars (75,000) distributed by Alpha International Inc. The paint on some of these pedal cars contains high lead levels. CPSC standards ban toys and other children's products containing high levels of lead. Young children could ingest the lead from the car's paint coating, presenting a lead poisoning hazard. Call Alpha International at (800) 368-6367 to receive a replacement car or return the product to the place where purchased to receive a full refund.

Air Powered Rockets (140,000) distributed by Estes Industries. The rockets' foam tips can break off exposing sharp edges that can cause face lacerations or eye injuries. The rocket system also has a weak pump handle that can break during use, posing a risk of hand lacerations. Estes and CPSC have received 16 reports of rocket tips breaking off. Six children were struck in the face by the rockets, including two who suffered detached retinas and four who suffered cuts requiring stitches. There were 68 reports of broken pump handles, including 6 hand lacerations. Call Estes Industries toll-free at (800) 576-5811 to get a replacement rocket, or visit www.estesrockets.com.

Firestormer and Skyblazer toy air-powered planes (137,000) distributed by Spin Master Toys. The plastic air intake chamber of the air-powered toy planes can burst, throwing plastic pieces, posing a laceration, bruise and abrasion hazard to consumers. Spin Master Toys received seven reports of Firestormer planes bursting, including four reports of injuries (chest abrasion, cut leg, bruised shoulder, and ringing in the ears) to children. There have been no reports involving the Skyblazer planes. Call Spin Master Toys at (800) 622-8339 to get a free replacement plane or visit www.spinmaster.com.

Animal Toy Sponges (280,000) distributed by Dollar Tree Stores. The eyes on the toys can detach, posing a choking hazard to young children. CPSC and Dollar Tree Stores received one report of an eye coming off. Return the toy sponge animals to the store where purchased for a full refund. Call Dollar Tree Stores at (800) 876-8077 or visit www.dollartree.com

Stuffed Polyester Pool Animals (310,000) distributed by Dollar Tree Stores. The seams can separate exposing the polyester stuffing and foam beads. The foam beads pose a choking hazard to young children. CPSC and Dollar Tree Stores have received one report of the seam ripping, exposing the polyester stuffing and a plastic bag containing foam beads. Return the stuffed animals to the store where purchased for a full refund. Call Dollar Tree Stores at (800) 876-8077 or visit www.dollartree.com.

Cotton Candy Machine (188,000) distributed by Rose Art Industries. The electric motor on the cotton candy machine can jam and overheat, posing a fire hazard. The heating unit can be activated without the spinner in place, presenting a risk of burn to consumers. CPSC and Rose Art have received 225 reports of the machines overheating. There have been three reports of fire, one resulting in an estimated $2,000 in property damage. CPSC received a report of two unconfirmed minor injuries. Call Rose Art at (888) 262-4474 for a free replacement motor unit or visit www.roseart.com.

Baby Walkers that can fall down stairs (2 brands totaling 53,500 units). Oriental International Trading Company distributed 3500 such walkers, and Bikepro distributed 50,000. The walkers will fit through a standard doorway and are not designed to stop at the edge of a step. Babies using these walkers can be seriously injured or killed if they fall down stairs. Return the baby walkers to the store where purchased for a full refund. Call Oriental International Trading Company at (866) 666-9868 or visit www.bike-stroller.com. For Bikepro walkers call Bikepro at (800) 261-2559.

Toy Tracks on Activity Center (152,000) distributed by Graco Children's Products. The toy track can break, presenting a cut or pinch hazard and exposed small parts pose a choking hazard to young children. Graco received 11 reports of the toy tracks breaking. Four children received minor scratches and one child's finger was pinched. Call Graco to receive a free replacement track at (800) 673-0392.

Tennessee Court Issues Class Certification Order In Tri-State Crematory Case

On November 4, 2002, a Tennessee state court certified a class action of families seeking recovery against Tri-State Crematory, its owners and five Tennessee funeral homes that delivered hundreds of bodies to Tri-State for cremation.

Plaintiffs, the families of loved ones whose remains were sent to Tri-State for cremation, allege that the funeral homes that contracted with Tri-State to carry out the cremations are liable for failing to visit Tri-State and ensure that cremations were performed and that human remains were treated with respect and dignity. For years, the crematory, located in Noble, Georgia, failed to perform cremations and passed off wood chips, powered cement and other substances as cremation ashes.

To learn more about this litigation, click here.

Pharmaceutical Companies Charged with Inflating Prices of Prescription Drugs

Lieff Cabraser is at the forefront of litigation challenging the
prices of dozens of prescription drugs used by millions of Americans. The lawsuits allege that the manufacturers have engaged in anti-competitive practices that have artificially inflated drug prices.

The objective of this litigation is to obtain judicial enforcement of
federal and state antitrust and consumer protection laws in order to
remedy past overcharges for prescription drugs, and to make affordable pharmaceuticals more accessible in the future to all consumers.

Among the prescription drugs that are subject to this litigation are the following:

AccuNeb, an inhalation solution used to treat lung diseases;
Diazepam, prescribed to relieve anxiety, nervousness, and tension;
Etopos, a drug that is injected and used in the treatment of cancer;
INFeD, also injected into the patient and prescribed to persons suffering from iron deficiency;
Metaproterenol, a bronchodilator used to treat asthma, bronchitis, and emphysema;
Mucosil, a drug that makes it easier to cough up mucus from the lungs and bronchial tubes and prescribed to patients with chronic bronchitis; and
Zoladex, a prescription drug that is administered via injection to treat a variety of serious conditions, including endometriosis, uterine fibroids, breast cancer and prostate cancer.

Patients that have been prescribed any of these drugs, particularly patients on Medicare, and wish to learn more about how they can assist the effort in ending alleged, widespread price-fixing in the pharmaceutical industry should contact Lieff Cabraser partner Eric B. Fastiff.

Baycol Recall Litigation Update

On August 8, 2001, the Food and Drug Administration (FDA) announced that Bayer Corporation, the manufacturer of Baycol, was removing the anti-cholesterol drug from the market because of reports of fatal rhabdomyolysis. It is estimated that the deaths of over 100 persons worldwide were linked to Baycol.

After the recall was announced, injured patients nationwide filed lawsuits against Bayer for failing to warn them of the serious side effects from the drug. Lawsuits filed in federal court are before U.S. District Judge Michael J. Davis of Minneapolis, Minnesota. Lieff Cabraser serves on the Baycol Plaintiffs' Steering Committee (PSC) and the Executive Committee of the PSC. With co-counsel, Lieff Cabraser is responsible for coordinating the activities of plaintiffs during pretrial proceedings.

On March 4, 2002, Judge Davis approved a case management order which set early deadlines for moving the case to trial. In addition, the order established an expedited schedule for discovery and document production. A document depository exists and the review of documents is ongoing. Defendants have already produced more than 1,000,000 documents. Depositions by plaintiffs' counsel of Bayer executives, marketers and scientists have also commenced. At the same time, Bayer has settled a limited number of the individual lawsuits filed by persons who developed serious injuries after ingesting Baycol.

Claims Process Underway In Billion Dollar Plus Sulzer Hip And Knee Implant Recall Settlement

In December 2000, Sulzer Orthopedics, Inc., recalled almost 30,000 hip implants, followed in May 2001 with a notification of failures of a knee implant. In the federal litigation, entitled In re Sulzer Hip Prosthesis and Knee Prosthesis Liability Litigation, MDL 1410 (N.D. Ohio), Sulzer Orthopedics announced in August 2001 an approximately $700 million settlement in which patients who needed surgery to replace their faulty implant would receive $57,500 in cash and stock.

Based on our own inquiry of the resources available to Sulzer Orthopedics to compensate injured patients and the extent of the person affected, Lieff Cabraser objected to the proposed settlement as inadequate. Subsequently, we played a leading role in negotiating a revised settlement with Sulzer valued at more than $1 billion. In May 2002, the Court granted final approval to the revised settlement that provided patients who needed corrective surgery at least $200,000 in cash, minus attorneys’ fees. No appeals were filed from the Court's order.

On November 4, 2002, Centerpulse, the new corporate name for Sulzer Orthopedics, announced that that it had completed its contribution to the settlement in a single payment to the Settlement Trust. This fulfilled Centerpulse's financing obligations under the settlement. Over the coming months, the Settlement Trust will pay out compensation to class members.

On behalf of our clients, Lieff Cabraser has filed the appropriate claims forms and is reviewing the preliminary decisions of payout amounts made by the Settlement Trust. Barring any unexpected administrative delays in the claims process, most, if not all, qualified claimants should receive their payments in the next six months.