I don't think there is any other way to cut or spin this deal then to say that the $4.85 billion settlement announced yesterday between Merck and the trial lawyers representing Vioxx claimants is a huge win for Merck and the legal team representing them.

Mark Wahlstrom of The Settlement Channel has an excellent break down of the numbers behind this deal. He points out that after the 8% payment is taken off the top of the fund, the attorneys are paid and the medical liens and expenses are resolved that the average claimant in a MI case is probably going to net around $50,000 and the average IC, or stroke victim, can expect about $17,500. I don't think most people realize just how small an amount is going to be available for the actual victims of these injuries if this settlement is affirmed in January but given the realities facing the trial lawyers in this situation it might be the best they can hope for.

There is no other way to spin this deal other then a total and complete victory for the "bleed them white" tactics employed by Merck. By adopting a take every case to trial and then appeal every loss stance they might have spent north of $2 billion defending the cases over the last three years, but as pointed out by The Settlement Channels analysis they probably saved Merck over $15 billion in claims paid in addition to another $3 to $4 billion in defense costs during the next 5 to 7 years. To say Merck got out keep in this matter is an understatement.

The average Vioxx settlements are going to be far below those of a comparable case, the Phen Fen litigation, in which the total settlement ended up closer to $20 billion for the heart damage those drugs caused. However, given the tactics, negotiating strength and realities of moving forward this deal clearly appealed to a significant segment of the trial bar. The question now is going to be whether or not the 85% threshold of claimants can be reached and if all Vioxx claimants and attorneys will be happy with the relatively meager amounts they will receive in this settlement.

The Legal Broadcast Network will be doing a series of podcasts on the Vioxx and Merck settlement, it's impact on trial lawyers, the decision to be made by claimants and what comes next in this process. Be sure to be watching these pages and listening to these important podcasts to be up to date on the choices that both trial lawyers and claimants will be needing to make in the coming months are regards their vioxx damage claims.