Another reason to question what your doctor and the FDA tell you about the safety and efficacy of any drug has now come to light. The Annals of Internal Medicine has just reported that Merck used the unsavory tactic of a “seeding trial” in its development of Vioxx. (This has come to light as a result of Vioxx litigation, and is not data the public would know if only the FDA, rather that the courts, were looking over Merck’s shoulder.) A seeding trial is carried out by a drug manufacturer just prior to or shortly after FDA approval of a new drug. Ostensibly, such a clinical trial is completed for the obvious medical research benefits, for example post-approval surveillance for safety and efficacy. In reality, there is an unspoken agenda: to get the drug in as many physicians’ hands as possible, enlisting them as investigators while picking up the support for monitoring and paperwork. The physicians receive the prestige of participating in a drug trial as clinical investigators and are financially reimbursed, and the drug manufacturer is familiarizing physicians with the drugs, thereby shortening the path to profitability, or “accelerating uptake” in the parlance. Such trials should be initiated for a legitimate research purpose, not as a pretext for profit.

The guidelines imposed by science, the FDA and institutional review boards are there for a purpose–to be sure that evidence-based science guides critical decisionmaking. When medical journals, the FDA, and the public are deceived with these kinds of tactics, the credibility of the system is corroded. Such deception cannot be permitted to stand without penalty by the FDA, and Merck should be subjected to professional and public scorn.

It is a difficult enough proposition for science to drive decisionmaking in America today. Too often, politics and the mythical thinking justifying the herbal phenomenon win the day. When money corrupts the scientific process, its credibility is undermined and the public increases its distrust of conventional medicine. Simply put: seeding trials are a pernicious practice that should never be permitted.

The NTSB has issued its findings as to the cause of the July 24, 2007 de Havilland Beaver airplane crash near Ketchikan. The crash killed the pilot and four passengers. The NTSB faulted the FAA’s supervision of tour operators and recommended a system of weather information to aid pilots in making in-flight decisions. While Taquan Air Service’s pilot had commerical aviation experience, he had only 7 hours of flight time in Alaska when he was hired. The NTSB found that the pilot improperly continued VFR flight in IFR conditions and did not adequately evaluate the deteriorating weather conditions.

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The Bush Administration has consistently sought to undermine consumer-oriented regulatory practices in favor of corporate interests. If it could also take a shot at plaintiffs and their demon trial lawyers, all the better. One of its more spectacular successes was the Supreme Court’s recent decision in a medical devices case, Riegel v. Medtronic, which stands for the proposition that the FDA’s approval of a medical device should preempt any litigation against the manufacturer in state claims by someone the product injures. As expected, every defendant with any conceivable preemption argument is now injecting that defense into products liability and negligence claims all across the country. FDA and Mercury Regulation;FAA Regulation. The Alaska Personal Injury Law Group just defeated a similar move by a defendant arguing that the FAA’s regulation of aircraft should preempt state claims against an air carrier.

The Supreme Court will next consider the application of the preemption doctrine in an injury claim against Wyeth by a Vermont guitarist who lost her arm below the elbow after she was injected with Phenergan, a nausea medicine. Wyeth v. Levine, Docket No. 06-1249. At issue is Wyeth’s claim that it should be immune from suit because of the FDA’s approval of Phenergan’s label. It reasons that the FDA’s regulatory approval should be enough to preempt the plaintiff’s claim that the manufacturer failed to warn about the dangers of IV injection of the drug. Remarkably, The New England Journal of Medicine has joined 47 state attorneys general and two past FDA commissioners in submitting amicus briefs to the Supreme Court warning that the FDA lacks the ability to serve “as the sole guarantor of product safety”.

It is well known that the FDA simply cannot know all the risks of a product or warning label it approves. This is especially true when the manufacturer intentionally skews clinical trial results, Newsday, Annals of Internal Medicine or otherwise keeps product risks from the FDA to achieve the lucrative benefits that come with the approval of a new drug or device, NEJM, Synthes Story. The FDA is not constituted to truly regulate this industry, and it cannot get to bedrock truth the way litigation can. Often, the FDA does not act until litigation proves the product’s dangers and makes public the evidence the manufacturer kept from the FDA when the drug or device was approved. Talbert v. E’ola Products, Inc.. If Big Pharma succeeds in the Wyeth matter, millions of Americans will be at risk from dangerous drugs. Without the protections of the legal system, their claims will be unrepresented, and corporate interests will run roughshod over the FDA. At this juncture, Congress will likely have to act to restore the balance of regulatory and legal interests the courts previously forged in protecting the rights of individuals to pursue state claims when injured by dangerous products approved by the FDA.

Alaska is the only state where the party that prevails in litigation is regularly entitled to recover partial attorney fees and litigation costs from the losing side. For an injured individual, this can mean that a major portion of their attorney fees and costs will effectively be paid by the defendant at the end of the case. Personal injury plaintiffs often greatly benefit from this rule.

Defendants, however, can make use of this rule by making an “offer of judgment.” If the injured plaintiff does not obtain a judgment that is at least 95% or more of the defendant’s “offer of judgment,” the plaintiff has to pay a portion of the defendant’s attorney fees and litigation costs.

Evie Rhodes found herself in the latter unhappy situation in an automotive personal injury case recently decided by the Alaska Supreme Court. Rhodes v. Erion. (This case was not handled by the Alaska Personal Injury Law Group.) Erion admitted negligently rear-ending Rhodes’ car but disputed the amount of the damages. Erion made an “offer of judgment” of $30,000 early in the case which Rhodes rejected. Rhodes ultimately obtained a judgment against Erion after trial of $27,016 — only 90% of the $30,000 offer. This meant that Erion, the negligent driver, was now the “prevailing party.” The court ordered Rhodes to pay Erion $42,263 in attorney fees, which amount completely offset Rhodes’ judgment and left Rhodes owing Erion $17,411. As the Alaska Supreme Court mildly put it, “the result in this case was less than ideal from Rhodes’ perspective.”

At the Alaska Personal Injury Law Group, we commonly face the unpleasant task of explaining to prospective clients the way in which “tort reform” has dramatically taken away the legal rights they thought they possessed. One of the recent unsung accomplishments of the Bush Administration is the silent destruction of the legal rights of those hurt by the malfeasance of corporations–stealth tort reform at the FDA.

Utterly unnoticed by the American public was an unheralded aboutface at the FDA. Although it had been silent on the issue before, the FDA began taking an active role in pending private litigation espousing the proposition that, if the FDA had approved a drug or medical device, then that approval should shield the manufacturer from any liability if the product were to injure or kill. In legal terms, that shield is called “preemption, ” the argument being that the federal government, by regulating the industry, has preempted state regulation and state tort claims. Manufacturers have long sought this shield, but the courts recognized the argument for the folly that it is, and commonly rejected it. Not surprisingly, this policy reversal by the White House was implemented by Dan Troy, one of 100’s of industry lobbyists President Bush put to work in positions responsible for public advocacy. Before his appointment, Troy’s practice was based on representing drug and tobacco companies in challenging FDA regulations. It was under Troy’s guidance that the FDA flip-flopped its position on preemption, much to the delight of the industry the FDA was supposed to be regulating.

The United States Surpeme Court, its makeup another Bush Legacy, has recently breathed life into the preemption defense, with its ruling in Riegel v. Medtronic. The ruling effectively wipes out all pending medical device litigation, from faulty pacemakers to defective insulin pumps. The natural extension of the legal argument will be to apply this ruling to preemption arguments in drug claims. And from there the erosion of legal rights will spread to every area of American society touched by the FDA (and by logical extension, any federal agency), whether the injury comes from a toxic chemical exposure or tainted hamburger.

The Alaska Personal Injury Law Group has previously discussed some of Allstate’s bad faith practices, for example Institutional Bad Faith 101 — How Allstate’s DOLF Program Works, and Study Finds Institutional Bad Faith at Allstate, State Farm and Other Major Insurers. A new study just released by a national consumer’s group has now found that Allstate’s institutional bad faith practices and mistreatment of policyholders make it the worst insurance company in America. The Ten Worst Insurance Companies in America.

The new study by the American Association for Justice was a comprehensive investigation of insurance companies across a wide variety of types of insurance. The investigation included review of thousands of court documents, FBI records, SEC records, records of state division of insurance complaints and investigations, and sworn testimony of former insurance adjusters. Based on that review, “One company stood out above all others. Allstate’s concerted effort to put profits over policyholders has earned its place as the worst insurance company in America.” The Ten Worst Insurance Companies in America p. 1.

Although Allstate beguiles consumers with its “good hands” advertising, the study examined Allstate internal documents that instruct claim handlers to use hardball “boxing gloves” tactics against its own policyholders. The Ten Worst Insurance Companies in America p. 3-4. The boxing gloves approach includes lowball offers and hardball litigation, backed up by Allstate’s huge financial might which it asserts against insureds who have the gall to seek the full compensation promised by Allstate’s insurance policy. Former employees describe the boxing gloves approach as the “three Ds”, which are deny, delay, and defend.

Allstate implemented this system, called Claim Core Process Redesign, (CCPR) in 1995 at the urging of consultants McKinsey Company. McKinsey are the “profits above all else” folks who brought you Enron. They proposed a makeover so that Allstate’s processes would focus on profits and enhancing shareholder value over all else, particularly over an insurer’s traditional duties of good faith and fair dealing towards its insureds. For more information about this scheme, see Allstate Finally Releases Development Documents For Its “Boxing Gloves” Claims Adjusting Program.

Why would the good hands people secretly start using boxing gloves on the insureds who put their trust in them? Money. The boxing gloves approach has been incredibly lucrative for Allstate. Allstate’s profit in 2007 alone was $4.6 billion. By comparison, Allstate’s surplus in 1994, accumulated over the entire life of Allstate, was only $6.5 billion. Since implementing CCPR, Allstate’s average net income per year has been approximately $2.25 billion.
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The Alaska Personal Injury Law Group has long been involved in the analysis of defective products sold by the diet supplement industry. Talbert v. E’ola Products, Inc. We have watched this industry repeatedly use unqualified personnel to design and sell products that are, in a word, dangerous. The industry has run amuck with virturally no regulatory oversight, and the consumer is repeatedly defrauded or hurt by exposure to the rapacious and dangerous practices of this industry.

It is thus with some appreciation of the legal and karmic forces at work in the universe to read today’s news that Michael Ellis, former CEO of Metabolife, was sentenced to prison for 6 months based on pleading guilty to a single count of lying to the FDA about the effects of Metabolife 356 and its notorious ingredient, ephedra. Despite the millions the company relieved consumers of, he was fined just $20,000. In 2005, William Bradley, who was Ellis’ partner in Metabolife, pleaded guilty to seven felonies, including tax evasion, and sentenced the following year to six months in custody.

Metabolife and Ellis had sent letters to the FDA stating that they had “never received a notice from a consumer that any serious adverse health event has occurred because of the ingestion of Metabolife 356.” Metabolife’s own documents, however, showed that it had received many reports from consumers of strokes, heart attacks, seizures, and other serious illnesses. The company ultimately turned over the reports of 14,000 ephedra-related adverse events that the company had previously not disclosed to the FDA, which ultimately was a key factor in the FDA’s ban on ephedra imposed on the industry in 2004.

On Monday, June 9, 2008, a chartered tour bus carrying Korean tourists traveling to Fairbanks crashed when the bus left the highway and rolled. The cause of the accident is unknown, but the initial scene investigation indicated that the bus hit a ditch, went airborne, and rolled at least once. Thirteen of the passengers were hurt, three of them critically.

The accident occurred on the Richardson Highway, approximately 175 miles northeast of Anchorage. Five Alaska State Troopers responded to the scene, and the critically injured were medivaced by Army Black Hawk helicopters.

The 54 seat tour bus was being operated by the Luxury Coach Line, a California-based corporation operating charter tours.

Alaska Personal Injury Law Group attorneys have waged many legal battles to force Allstate to produce documents that are relevant to insurance “bad faith” claims against the insurer by injured Alaskans. These claims have alleged that Allstate unfairly and unreasonably delayed and “low balled” their personal injury insurance claims. Significantly, the Florida Department of Insurance, Office of Insurance Regulation (OIR) recently suspended Allstate’s license to write new insurance in that state because Allstate refused to produce documents requested by the Office of Insurance Regulation (OIR) regarding Allstate’s claim practices. That suspension order was recently affirmed by the Florida Court of Appeals, which wrote that “Allstate’s willful, indeed potentially criminal, failure to comply with its disclosure obligations has prevented OIR from adequately investigating its reasoned belief that Allstate is systematically defrauding its policyholders.” Allstate Floridian, et. al. v. Office of Insurance Regulation, 2008 WL 2048349 (Fla. App., May 14, 2008) Forcing the insurer to produce the relevant documents is key to any successful insurance “bad faith” case. We have often gone back to court repeatedly to ensure that we get the evidence injured insureds need to prove their claim. We are encouraged by the Florida court’s firm stance on this issue.

An ERA Helicopters Eurocopter Arrow Star 350 B2 helicopter crashed in heavy weather conditions near Sheep Mountain on April 15, 2008, killing four people, and seriously injuring a 14-year-old boy. Killed in the crash were the pilot, Benoit Pin, and three employees of the Alaska Department of Administration, Michael D. Seward, Thomas E.Middleton, and Joseph C. O’Donnell. The flight was en route to a state telecommunications tower near Tahneta Pass when the crash occurred. The 14-year-old boy, Quinn Ellington, was found alive on Wednesday morning. Weather hampered the search for the craft, whose emergency locator transmitter went off on Tuesday at 1625 hours. An HC-130 and pararescue personnel on snow machines searched through the night until the crash site was located Wednesday morning approximately 120 miles northeast of Anchorage.

The NTSB is investigating the crash. The circumstances are similar to another crash of an ERA Aviation helicopter near Fire Island in October 2001, which occurred in heavy snow conditions. (Richard Vollertsen, of the Alaska Personal Injury Law Group, was lead counsel in that crash investigation: www.alaskainjurylawgroup.com/lawyer-attorney-1286823.html) The weather at the time of the Sheep Mountain crash included snow, rain and fog, and rescuers called it “blizzard conditions.” State of Alaska personnel have not yet explained why Ellington, Michael Seward’s stepson, was a passenger on a flight where state personnnel were performing maintenance on a transmission tower. The pilot, Benoit Pin, obtained his commercial helicopter license in 2001.

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