Off-Label Use of Paxil Subject of Death Lawsuit

Some dermatologists have prescribed the anti-depressant drug, Paxil, for "off-label" use in teenagers.  One of those teenagers, a 16 year old from New Jersey, killed himself shortly after he began the Paxil regime.  The parents of the teen brought a lawsuit against Glaxo-SmithKline (GSK), claiming that the drug firm was negligent in failing to warn doctors about the risk of suicide that the drug posed to children and adolescents.  GSK sought to have the case dismissed, claiming that the FDA did not require such a warning since the drug was never approved for pediatric use.  A federal judge in Philadelphia has ruled that the suit could go forward because there was no evidence that the FDA has specifically considered, and rejected, the need for a warning about pediatric suicide with Paxil.  The court noted that the negligent failure to warn claim "closes the void" in the FDA which can neither independetnly regulate off-labe uses or require additional clinical trials of a drug.  Knipe v. SmithKlineBeecham, 2008 WL 4442635 (E.D.Pa.)

In 2004 Congress passed the Servicemembers Civil Relief Act (SCRA), amending an earlier act from 1940. The act provides significant assistance to members of the military who are deployed overseas.

For instance, the period of active duty military service may not be included in computing time periods in which military members may bring a claim (or be sued for a claim). Importantly, however, this "time out" for running of statutes of limitations does not apply to family members or dependents.

Of even more importance these days to our military on active duty is the 2008 amendments to the SCRA which limits the legal interest rate on all liabilities of servicemembers to 6 per cent, including for mortgages! This means that interest on mortgages above 6% is not just deferred, it is forgiven! Reduction of credit card payments can be dramatic. Under the Act, "interest" includes such things as service charges, renewal charges, fees and any other charge except bona fide insurance. But this relief is not automatic: a service member must provide his or her creditor with written notice of mobilization, along with a copy of the active duty military orders, to start the application of the Act. But, on the other hand, a servicemember has up to 180 days after his or her release from active duty to give this notice.

The American Association for Justice has released a new report documenting insurance misconduct in health insurance, long term care insurance, disability insurance and other types of insurance. The report notes that insurance companies engage in "dirty tricks" and "unethical behavior" to boost their bottom line when consumers and customers have paid them premiums to buy peace of mind.

The report notes that some of America’s most well-known insurance companies–the same ones that spend billions on advertising to earn your trust–have endeavored to deny claims, delay payments, confuse consumers with incomprehensible insurance-speak, and retroactively refuse benefits to anyone who may cost them money. These companies also reward employees who successfully deny claims, replacing employees who will not deny claims, and otherwise encourages "outright fraud" to avoid paying claims.

To read the full report: http://www.justice.org/InsuranceTactics.pdf.

Servicemembers Civil Relief Act

In 2004 Congress passed the Servicemembers Civil Relief Act (SCRA), amending an earlier act from 1940. The act provides significant assistance to members of the military who are deployed overseas.

For instance, the period of active duty military service may not be included in computing time periods in which military members may bring a claim (or be sued for a claim). Importantly, however, this "time out" for running of statutes of limitations does not apply to family members or dependents.

Of even more importance these days to our military on active duty is the 2008 amendments to the SCRA which limits the legal interest rate on all liabilities of servicemembers to 6 per cent, including for mortgages! This means that interest on mortgages above 6% is not just deferred, it is forgiven! Reduction of credit card payments can be dramatic. Under the Act, "interest" includes such things as service charges, renewal charges, fees and any other charge except bona fide insurance. But this relief is not automatic: a service member must provide his or her creditor with written notice of mobilization, along with a copy of the active duty military orders, to start the application of the Act. But, on the other hand, a servicemember has up to 180 days after his or her release from active duty to give this notice.

State Farm is the largest automobile insurer in the United States. Last year alone, its automobile insurance business collected over $30 billion in premiums! The combined net worth of the State Farm group of companies increased $5.6 billion in 2007, resulting in an overall net worth of $63.7 billion. State Farm is the largest auto insurer in Colorado.

Because of its size, State Farm's policies and procedures affect millions of its customers. In 2007 CNN's Anderson Cooper exposed State Farm's business model for small impact auto accidents as "Deny/Delay/Defend". This means that State Farm will deny that any medical claim is related to the collision, will delay the final hearing on the claim to force the victim to incur substantial expenses and wait years for trial, and defend the claim by convincing the public (on the jury) that its conduct was solely designed to fight "insurance fraud.

"State Farm's business model is not to pay a reasonable settlement value on a claim, but to maximize its profits through its Deny/Delay/Defend business model. The State Farm model is similar to the business plan developed by Allstate in conjunction with consultant McKinsey & Company. It is not surprising that State Farm also hired McKinsey as a consultant to help it refine its business practices and increase its profits. Allstate has been severely criticized (and occasionally penalized) by several courts for its claims conduct prompted by the McKinsey consultant's plan.