Australia's arrogant medical regulators take another big tumble
The arrogant bitches (e.g. Rita Maclachlan and Fiona Cumming) at the TGA thought they knew it all -- and to hell with evidence and to hell with people's jobs. No word so far about any of them being penalized for their grossly improper behaviour -- even though one of them even shredded notes in an attempt to hide their deliberations. The taxpayer is just left with a $100m bill for their high-handed actions -- $50m in 2008 and another $50m now
A SETTLEMENT, believed to be more than $50 million, has been reached in the Pan Pharmaceuticals class action against the federal government. The settlement, announced yesterday, brings to a close a string of legal suits since 2003, and is belated vindication for the company's founder, Jim Selim, who died earlier this year after a stroke and battle with leukaemia.
Mr Selim had been giving evidence in the Federal Court in the months before his death. Terms of settlement are confidential.
In 2003, Pan boasted "the largest product offering of its kind in the world", with 4500 formulations of tablets, gels, liquids, creams and powders on offer, when it became the subject of a huge product recall.
In April that year the Therapeutic Goods Administration suspended Pan's manufacturing licence and recalled everything it had manufactured in the past year. Its investigation into Pan was sparked by reports the company's Travacalm product was causing hallucinations in some people. The company collapsed within months.
In 2008 Mr Selim received a $50 million settlement from the federal government.
About 165 of Pan's customers, creditors and sponsors joined a class action, led by PharmaCare, seeking their own payments from the government and the TGA, saying they were left $120 million out of pocket by the action taken by authorities. Three other companies ran their own cases alongside it.
The litigation funder, IMF, said if the settlement was approved by the court they would receive $24 million which would generate a profit after overheads but before tax of $17 million.
Litigation funders generally receive about one-third of proceeds of settlement, making the settlement in favour of the class action more than $50 million. "Any settlement is a compromise from all parties concerned," said the executive director of IMF, John Walker. "[In] this particular dispute, I think everybody involved ought to be happy with the outcome."
Pan's associates had accused the authorities of negligence and misfeasance of public office and some are claiming for a loss of share value, which lawyers for the TGA said there was no legal authority for.
Mr Walker hoped an application for approval would be before the court before year's end.