Takeda, Japan’s largest pharmaceutical company, announced on Tuesday that it agreed to pay $2.4 billion in settlement for thousands of lawsuits from patients and their families who claimed that the company’s diabetes drug, Actos, caused bladder cancer.
The company stated that this settlement would resolve a majority of the product liability lawsuits related to the drug and that it would cover the costs for defending the remaining cases by taking a $2.7 billion charge against earnings.
There are about nine thousand bladder cancer cases related to Actos that are still pending against Takeda. The lawyers representing the plaintiffs claim that Takeda concealed the cancer risk of the drug, which is a fairly big-selling medication for diabetes.
“We are pleased that Takeda has agreed to provide $2.4 billion to compensate thousands of deserving bladder cancer victims,” Richard J. Arsenault, one of the plaintiff lawyers, said in a statement on Tuesday. “After years of hard-fought and contentious litigation, the defendants have finally stepped up to the plate, and we applaud that effort.”
Takeda has not admitted to liability, however. Company representatives say that they settled in order to “reduce the uncertainties of complex litigation” and that the benefits of Actos outweigh any risks.
The settlement is one of the largest product-liability settlements in the pharmaceutical industry.
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