PROPULSID II SETTLEMENT PROGRAM ANNOUNCEMENT
 

Janssen Pharmaceutica And The Plaintiffs Steering Committee
Of The Propulsid Multi-District Litigation Announce Agreement To Resolve Federal Cases

(February 4, 2004) -- Janssen Pharmaceutica, a Johnson & Johnson company, and the Plaintiffs Steering Committee (PSC), through lead counsel, Russ M. Herman of Herman, Mathis, Casey, Kitchens & Gerel, LLP, of the PROPULSID(r) Federal Multi-District Litigation (MDL- 1355, E.D. La.) announced today that they had reached an agreement in principle to resolve all federal lawsuits related to the product PROPULSID (cisapride).

There are approximately 4,000 individuals included in the Federal MDL of whom approximately 300 are alleged to have died from use of the drug. The agreement becomes effective once 85 percent of the death claims, and 75 percent of the remainder, agree to the terms of the settlement. In addition, 12,000 individuals who have not filed lawsuits, but whose claims are the subject of "tolling agreements" suspending the running of the statutes of limitations against those claims, must also agree to participate in the settlement before it will become effective.

The agreement requires all participating plaintiffs to submit medical records to a court appointed independent medical panel. The medical panel will determine whether the claimed injuries were caused by PROPULSID and otherwise meet the standards for compensation. If those standards are met, a court-appointed special master will determine compensatory damages. As part of the agreement, defendants will waive a number of defenses.

Janssen will pay as compensation a minimum of $69.5 million and a maximum of $90 million, depending upon the number of plaintiffs who enroll in the program. Janssen will also establish an administrative fund not to exceed $15 million, and will pay legal fees to the PSC not to exceed $22.5 million, subject to court approval.

Please see the links below for the Settlement Program Term Sheet and forms related to the Settlement Program.

Inquiries should be directed to Russ M. Herman of Herman, Mathis, Casey, Kitchens & Gerel, LLP, 820 O'Keefe Avenue, New Orleans, Louisiana 70113, PH: (504) 581-4892, FAX: (504) 561-6024, for plaintiffs.