TYPICAL CLASS ACTION LAW SUIT SETTLEMENT BLOODBOOK.COM   THIS PAGE PRESENTS THE FULL TEXT OF A TYPICAL COURT SETTLEMENT AGREEMENT IN A CASE INVOLVING TAINTED BLOOD PRODUCTS. TO HOME PAGE       CLOSE WINDOW   Presented here is a settlement agreement that is typical of settlements adjudicated in these types of cases. This Settlement, on 18 September, 2000 of a Class Action Law Suit is presented in the final form as found in the court records. We have not changed one single word below the red line on this document This type of document is available to the public, but not well advertised. There are many, this one is recent, and pertinent. They all read much the same

IN THE UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA

NOTICE OF CLASS ACTION SETTLEMENT TO:

ALL PERSONS WHO RECEIVED GAMMAGARD® INTRAVENOUS IMMUNE GLOBULIN (IVIG) BETWEEN JANUARY 1, 1993 AND FEBRUARY 24, 1994 AND THEIR REPRESENTATIVES, ESTATES, AND SURVIVING SPOUSES, PARENTS, AND CHILDREN

You are notified of:

• The conditional certification of a settlement class consisting of certain persons who received an infusion of Gammagard® IVIG and certain of their family members.
  
  
• The preliminary approval of a nationwide class action settlement under which Baxter Healthcare Corporation will pay benefits to qualified settlement class members.
  
  
• Your rights as a settlement class member to comment on or object to, participate in, or exclude yourself from the settlement.
  
  
• A court hearing on September 18, 2000 to determine the fairness, adequacy, and reasonableness of the settlement.
  
  
• Important dates for all settlement class members:

CONTENTS

ATTACHMENT A -- DEFINITIONS OF QUALIFYING CONDITIONS

ATTACHMENT B -- CHALLENGE PROCEDURES

ATTACHMENT C -- GAMMAGARD® IVIG CLASS ACTION SETTLEMENT RELEASE

I.    THE GAMMAGARD® IVIG LITIGATION AND SETTLEMENT

        A.      Background of the Litigation

          BaxterHealthcare Corporation processed an intravenous immune globulin (IVIG) called Gammagard®, which was an intravenous therapy prescribed by licensed medical doctors for patients with various immune system disorders. The medical conditions for which Gammagard® IVIG was commonly prescribed include, but are not limited to, the following:

• Primary Immune Deficiencies such as:
  • Congenital Agammaglobulinemias
  • Common Variable Immunodeficiency (CVID)
  • Wiskott-Aldrich Syndrome
  • Severe Combined Immunodeficiencies (SCID)
• B-Cell Chronic Lymphocytic Leukemia (CLL)
• Idiopathic Thrombocytopenic Purpura (ITP)

          A number of individuals who used Gammagard® IVIG between January 1, 1993 and February 24, 1994 (the “Window Period”) claim to have become infected with the Hepatitis C Virus ("HCV") from Gammagard® IVIG. If any HCV infection occurred, Baxter claims, it occurred as a result of changes in the source plasma mandated by the federal government. The number of patients receiving Gammagard® IVIG during the Window Period is not known but is estimated to be several thousand.  Anyone who received Gammagard® IVIG during the Window Period may have been exposed to HCV.

          Both class actions and numerous individual actions have been filed against Baxter Healthcare Corporation and Baxter International Inc. (collectively, "Baxter") for negligence, strict liability, breach of implied and express warranty, fraud, misrepresentation, and infliction of emotional distress. These lawsuits allege, among other things, that individuals who were infused with Gammagard® IVIG during the Window Period were exposed to and/or infected with HCV. Baxter denies these allegations and has asserted various defenses.

           These lawsuits involve only Gammagard® IVIG used during the Window Period. They do not involve Gammagard® S/D IVIG, which is different than Gammagard® IVIG.  Gammagard® S/D IVIG has not been the subject of claims nor is it included in the class action or this settlement.

           On June 9, 1995, all actions filed in federal court were transferred to the United States District Court for the Central District of California for coordinated proceedings before the Honorable Manuel L. Real ("the Court"). On March 1, 1996, the Court certified a nationwide class action, among other things. The plaintiffs undertook factual investigation, reviewed thousands of documents, took depositions, and consulted with experts.  The parties litigated two appeals.  After 14 months of negotiations under the supervision of the Court-appointed Special Master, the parties entered into a Settlement Agreement on October 15, 1999.

          The plaintiffs and Baxter believe that the final outcome of the lawsuits, if they were to proceed through trial and appeals, is uncertain. While asserting that the claims have no merit, Baxter has nonetheless agreed to enter into a settlement as a compromise of disputed claims and to bring the litigation substantially to an end. Based upon their evaluation of the facts and law, the parties have determined that the proposed settlement is fair, reasonable and adequate. They have reached this conclusion based on the substantial benefits the settlement provides to settlement class members; the risks, uncertainties and costs of litigation; and the desirability of providing benefits to class members promptly rather than continuing protracted litigation.

          The Court has preliminarily approved the settlement, under which monetary benefits will be paid to qualified settlement class members. The Court has made no final ruling as to the merits of the class allegations or Baxter’s denials and defenses. Distribution of this Notice is not a Court ruling or opinion as to the likelihood of recovery by the class or as to the merits of Baxter’s defenses.  The purpose of this Notice is only to inform settlement class members about the proposed settlement and their rights under the settlement.

        B.      Class Actions In General

          A class action is a lawsuit in which the claims and rights of a group of people are decided in a single court proceeding brought by representative plaintiffs (the "class representatives"), without the necessity of each person filing his or her own lawsuit or appearing as an individual plaintiff. Class actions are used when there are common issues of law or fact raised by all claims. Use of the class action eliminates the cost, waste, and delay of multiple lawsuits and ensures that all class members are treated similarly. The Court has a responsibility to assure that resolution of the class claims is fair.

        C.      The Settlement

          The purpose of the settlement is to identify those individuals who may be infected with HCV through the use of Gammagard® IVIG during the Window Period.  The settlement recognizes that such individuals fall into three subclasses:

          (1) Current Infection. Those Gammagard® IVIG Recipients who are currently infected with HCV as a result of their infusion with Gammagard® IVIG and who therefore face the risk of future complications arising from those infections;

          (2) Past Infection. Those Gammagard® IVIG Recipients who were previously infected with HCV as a result of their infusion with Gammagard® IVIG but who no longer face the risk of future complications, either because they have "cleared" the virus or because they are no longer alive; and

          (3) Exposure Only. Those Gammagard® IVIG Recipients who were previously exposed to possible HCV infection as a result of their infusion with Gammagard® IVIG but who currently do not appear to have experienced a resulting HCV infection.

        D.      Class Representatives

           Three people, who are called the "class representatives," have agreed to litigate their claims on behalf of themselves and all settlement class members. The class representatives are Kristen Renee Geary (Current Infection), John Mavrikos (Past Infection), and Brenda Johnson (Exposure Only). The Court has determined that the class representatives’ claims are typical of the claims of all settlement class members within each category and that these representatives will fairly and adequately protect and pursue the interests of the class members.

        E.      Class Counsel

           The Court has also appointed certain attorneys who are qualified, experienced, and able to conduct this litigation and represent all settlement class members ("Class Counsel").  A list of Class Counsel, indicating which subclass of settlement class members each represents, is provided on page 15 of this Notice. Settlement class members are not individually responsible for the costs or fees of Class Counsel. Settlement class members may, but are not required to, retain individual counsel.

II.   PERSONS WHO ARE SETTLEMENT CLASS MEMBERS

          On [Date of Order], the Court conditionally certified a settlement class consisting of certain persons who received an infusion of Gammagard® IVIG during the Window Period and certain of their family members. Settlement class members are:

1. All citizens or permanent residents of the United States who received an infusion of Gammagard® IVIG during the Window Period (referred to as "Recipients"); OR
   
   
2. The estate of any deceased Recipient; OR
   
   
3. In the absence of an estate, a surviving spouse of any deceased Recipient; OR
   
   
4. In the absence of an estate or a surviving spouse, the surviving children of any deceased Recipient; OR
   
   

         Specifically EXCLUDED as settlement class members are:

1. Any person whose claim is based upon a Recipient who was the subject of a previously settled claim or lawsuit against Baxter relating to alleged exposure to, and/or infection with, HCV arising from the use of Gammagard® IVIG; OR
   
   
2. Any person whose claim is based upon or related to a Recipient who was the subject of a lawsuit against Baxter involving the alleged exposure to, and/or infection with, HCV arising from the use of Gammagard® IVIG that has proceeded to final judgment or been dismissed with prejudice.

           A person who is covered by the above class definition is a settlement class member, regardless of whether or not such person has a pending lawsuit regarding Gammagard® IVIG in state or federal court, and whether or not such person presently is infected with HCV.

           All potential settlement class members are encouraged to contact healthcare providers promptly and consult medical records to determine if they or their deceased spouse, parent, or child received Gammagard® IVIG during the Window Period. IMPORTANT:   A settlement class member who does not timely and properly file a claim is not entitled to share in the settlement.  A settlement class member who neither files a claim nor excludes him/herself from the settlement shall be forever barred from seeking any damages or other payments from Baxter arising out of alleged exposure to, and/or infection with, HCV resulting from the use of Gammagard® IVIG during the Window Period.

III.   SUMMARY OF THE SETTLEMENT

           The Settlement Agreement, entitled "Class Action Settlement Agreement Re Gammagard® Intravenous Immune Globulin Claims," was filed with the Court on December 20, 1999. The following is only a summary of the settlement and is qualified entirely by the Settlement Agreement, which can be examined as described below under the heading "Examination of Settlement Agreement and Other Documents."

        A.      Overview of Settlement Benefits

           There are two basic types of payments that settlement class members may be eligible to receive.  Class members who can establish infusion with Gammagard® IVIG during the Window Period may apply for "Basic Payments" as described below. In addition, some class members who can establish both their right to a "Basic Payment" and satisfy medical criteria establishing that the Recipient’s HCV infection caused progression to certain serious medical conditions or death may apply for "Additional Payments" also described below.

           The settlement also provides that settlement class members can elect to have their blood tested at Baxter’s expense to determine whether they are currently infected with HCV.  Alternatively, a class member can choose to have a blood test done at a facility of his/her choice.

           Settlement class members have a choice. They can elect to seek benefits under this settlement by filing a claim and other necessary documents as described below OR they can chose not to participate in the settlement and "opt out" by filing a simple written request. If a class member opts out, he/she retains whatever rights he/she currently has to proceed with a claim against Baxter relating to alleged exposure or infection with HCV arising out of the use of Gammagard® IVIG during the Window Period.

        B.      Proof of Infusion

          All settlement class members who request free HCV testing and/or submit Claims must demonstrate that the Recipient was infused with Gammagard® IVIG during the Window Period. "Proof of Infusion" is established by presenting one of the following:

           (1) Medical records indicating that the Recipient received one or more infusions of Gammagard® IVIG during the Window Period, together with a letter or some other proof that the medical records are accurate copies of records from a physician, clinic, hospital, or other medical care provider; OR

          (2) Medical records indicating that a treating physician prescribed Gammagard® IVIG by name for infusion for the Recipient during the Window Period and that the Recipient received one or more infusions of an intravenous immune globulin during the Window Period, together with a letter or some other proof that the medical records are accurate copies of records from a physician, clinic, hospital, or other medical care provider; OR

          (3) Pharmacy records indicating that the Recipient received one or more infusions of Gammagard® IVIG during the Window Period, together with a letter or some other proof that the medical records are accurate copies of records from a physician, clinic, hospital, or other medical care provider; OR

          (4) A treating physician’s verified statement that the treating physician prescribed Gammagard® IVIG for the Recipient and that the Recipient received one or more infusions of an intravenous immune globulin during the Window Period or that the treating physician has direct knowledge that the Recipient received one or more infusions of Gammagard® IVIG during the Window Period.

        C.      Free HCV Testing

          A blood test called a Polymerase Chain Reaction, commonly referred to as a "PCR Test," can detect HCV even if you have no symptoms. To qualify for certain settlement benefits, a settlement class member must submit a positive PCR Test. Class members can provide a PCR Test result or, if he/she can demonstrate Proof of Infusion, may request a free HCV Test Kit to be paid for by Baxter. The class member can take the HCV Test Kit to his or her doctor to have a blood sample drawn and the doctor will send the blood sample to a lab for PCR testing. When the class member’s doctor receives the test results, the class member can assess his/her personal medical condition and decide whether to participate in or to exclude him/herself from the settlement.

           The instructions for requesting a HCV Test Kit are detailed in the "Instructions for Participating in the Gammagard® IVIG Class Action Settlement," a copy of which is enclosed in the Information Packet. The deadline for submitting a request for a Test Kit is April 24, 2000.

        D.      Basic Payments

          Settlement class members may submit Claims for one of the following three Basic Payments:

           (1) Exposure Only Payment. Exposure Only Payments involve those Recipients who do not claim prior or current HCV infection. When a settlement class member submits a properly completed Claim which demonstrates Proof of Infusion by the Recipient but does not demonstrate that the Recipient became infected with HCV as a result of such infusion, the settlement class member shall be entitled to an Exposure Only Payment of $1500, provided that the Claim is either unchallenged by Baxter or approved after challenge.  In no event, however, shall more than one $1500 payment be made in connection with the same Recipient. If two or more settlement class members submit qualified Claims in connection with the same deceased Recipient, the $1500 payment shall be divided equally among the qualified Claims.

          The instructions for submitting a proper Claim for an Exposure Only Payment are detailed in the enclosed "Instructions for Participating in the Gammagard® IVIG Class Action Settlement." The deadline for submitting a Claim Form for an Exposure Only Payment is [Date].

          (2) Past Infection Payment. Past Infection Payments involve those Recipients who were previously infected with HCV but who either "cleared" the virus or were deceased as of October 15, 1999.  When a settlement class member submits a properly completed Claim which demonstrates Proof of Infusion by the Recipient and infection with HCV as a result of such infusion, but fails to show that the Recipient was still living with that infection as of October 15, 1999 (either because the Recipient cleared the virus subsequent to the infection, or because the Recipient was no longer alive as of October 15, 1999), the settlement class member shall receive one of the following Past Infection Payments, provided that the Claim is either unchallenged by Baxter or approved after challenge:

               (a) If the Claim establishes that the Recipient either cleared the virus (as determined by the date of the first negative PCR Test following the last positive PCR Test) or died during the period of time from January 1, 1993 through December 31, 1994, the Past Infection Payment shall be $70,000.

               (b) If the Claim establishes that the Recipient either cleared the virus or died during the period of time from January 1, 1995 through December 31, 1996, the Past Infection Payment shall be $80,000.

               (c) If the Claim establishes that the Recipient either cleared the virus or died during the period of time from January 1, 1997 through October 15, 1999, the Past Infection Payment shall be $90,000.

          In no event, however, shall more than one Past Infection Payment be made in connection with the same Recipient. If two or more settlement class members file qualified Claims in connection with the same deceased Recipient, the Past Infection Payment shall be divided equally among the qualified Claims.

          The instructions for submitting a proper Claim for a Past Infection Payment are detailed in the enclosed "Instructions for Participating in the Gammagard® IVIG Class Action Settlement." The deadline for submitted a Claim Form for a Past Infection Payment is [Date].

          (3) Current Infection Payment. Current Infection Payments involve Recipients who can prove HCV infection as of October 15, 1999. When a settlement class member submits a properly completed Claim which demonstrates Proof of Infusion by the Recipient, the Recipient was infected with HCV as a result of such infusion, and the Recipient was living with that HCV infection as of October 15, 1999, the settlement class member shall receive a Current Infection Payment, provided that the Claim is either unchallenged by Baxter or approved after challenge. The amount of the Current Infection Payment shall depend upon the age of the Recipient on February 1, 1998, as follows:

          Further, if within five years of October 15, 1999, a Recipient who has previously received a Past Infection Payment has a subsequent positive PCR Test, such Recipient may apply to the Court for a determination that such infection was caused by the Recipient’s infusion with Gammagard® IVIG during the Window Period. If such application is sustained by the Court, Baxter shall pay the Recipient the difference between the Past Infection Payment and the Current Infection Payment that the Recipient would have received had such continuing infection been known as of the date of the Past Infection Payment.

          The instructions for submitting a proper Claim for a Current Infection Payment are detailed in the enclosed "Instructions for Participating in the Gammagard® IVIG Class Action Settlement." The deadline for submitting a Claim Form for a Current Infection Payment is [Date].

         E.      Additional Payments

          Any settlement class member who qualifies for a Past Infection Payment or a Current Infection Payment may also apply for one or more of the Additional Payments specified below in connection with certain medical conditions arising out of the Recipient’s HCV infection. If the settlement class member received a Current Infection Payment prior to submitting an application for an Additional Payment, the settlement class member must demonstrate the Recipient’s continuing HCV infection since the date of the Current Infection Payment. The instructions for submitting an application for an Additional Payment are detailed in the enclosed "Instructions for Participating in the Gammagard® IVIG Class Action Settlement." There is no deadline for submitting an application for an Additional Payment.

           (1) Additional Payment for Qualifying Conditions. The Qualifying Conditions are Ascites, Cryoglobulinemia, Esophageal Variceal Hemorrhage, Hepatocellular Carcinoma, Portal Systemic Encephalopathy, Renal Failure, and Spontaneous Bacterial Peritonitis. The definitions of these Qualifying Conditions are in Attachment A attached to this Notice.

          A settlement class member who receives either a Past Infection Payment or a Current Infection Payment shall be eligible to receive an Additional Payment of $225,000 if the subject Recipient has been or is subsequently diagnosed with one or more Qualifying Conditions and HCV is the "Primary Cause" of the Qualifying Condition(s). HCV is the “Primary Cause” of the Qualifying Condition if the Qualifying Condition was caused by HCV more than any other single cause. If the diagnosis is made subsequent to December 22, 1999, the Additional Payment shall be increased by two and one-half percent (2.5%) per year, compounded annually, beginning one year after December 22, 1999 , for a period of time up to a maximum of 30 years after December 22, 1999 and ending in the year that the Recipient is first diagnosed with any one or more of the Qualifying Conditions. This payment for Qualifying Conditions shall be a one-time payment upon first demonstration of eligibility and the settlement class member shall not be entitled thereafter to any Additional Payments for Qualifying Conditions even if the Recipient develops additional Qualifying Conditions. In no event shall more than one Additional Payment for Qualifying Conditions be made in connection with the same Recipient. If two or more settlement class members file qualified applications in connection with the same Recipient, the Additional Payment for Qualifying Conditions shall be divided among the qualified applications.

           (2) Additional Payment for First and Second Liver Transplants. A Liver Transplant is an operation in which all functions of the liver necessary for survival are substituted by another organ (homograft or xenograft) with the intent of permanent implantation and function. A settlement class member who receives either a Past Infection Payment or a Current Infection Payment shall be eligible to receive an Additional Payment of $225,000 if the subject Recipient has undergone a Liver Transplant with respect to which the Recipient’s HCV Infection or Qualifying Condition is the "Primary Cause." HCV or the Qualifying Condition is the "Primary Cause" of the Liver Transplant if the Liver Transplant was made necessary by HCV or the Qualifying Condition more than any other single cause. If the Liver Transplant takes place subsequent to the December 22, 1999, the Additional Payment shall be increased by two and one-half percent (2.5%) per year, compounded annually, beginning one year after December 22, 1999 for a period of time up to a maximum of 30 years after December 22, 1999.

          In the event that the Recipient undergoes a second Liver Transplant made necessary due to HCV Infection, any Qualifying Condition, or the failure of the first Liver Transplant as the "Primary Cause," the settlement class member shall be eligible to receive a further payment of $125,000. If the Liver Transplant takes place subsequent to December 22, 1999, the Additional Payment shall be increased by two and one-half percent (2.5%) per year, compounded annually, beginning one year after December 22, 1999 for a period of time up to a maximum of 30 years after December 22, 1999. No settlement class member shall be entitled to any further payments for Liver Transplant even if the subject Recipient undergoes more than two Liver Transplants.  If two or more settlement class members file qualified applications in connection with the same Recipient, the Additional Payment for Liver Transplant shall be divided among the qualified applications.

           (3) Additional Payment for Death. A settlement class member who receives either a Past Infection Payment or a Current Infection Payment shall be eligible to receive an Additional Payment of $250,000 if the subject Recipient has died, or subsequently dies, due to HCV infection, any Qualifying Condition, or the failure of a Liver Transplant as the "Primary Cause." HCV, the Qualifying Condition, or failure of the Liver Transplant is the "Primary Cause" of death if the death was caused by HCV, the Qualifying Condition, or failure of a Liver Transplant more than by any other single cause. If such death takes place subsequent to December 22, 1999, the Additional Payment shall be increased by two and one-half percent (2.5%) per year, compounded annually, beginning one year after December 22, 1999 for a period of time up to a maximum of 30 years after December 22, 1999. If two or more settlement class members file qualified applications in connection with the same Recipient, the Additional Payment for Death shall be divided among the qualified applications.

        F.      Baxter's Rights and Obligations

          (1) Baxter’s Financial Obligations. Baxter is responsible for the reasonable costs of this Notice, administering the settlement program, court-approved attorneys’ fees, and approved settlement payments. Baxter has already made deposits into a Settlement Fund for these purposes, and shall make additional future deposits as the Court and Settlement Administrator deem necessary.

           (2) Baxter’s Right of Withdrawal. After the deadline for opting out and filing Claims for Basic Payments, Baxter will decide whether it wishes to confirm its participation in this settlement or, alternatively, withdraw from this settlement. If Baxter chooses to withdraw, notice will be sent to all settlement class members known to the Settlement Administrator. In such event, no payments will be made to settlement class members and all class members will be in the same position as if the settlement had never occurred.

          (3) Baxter’s Right to Challenge Claims for Basic Payments. Generally, Baxter has the right to review all Claims for compliance with the requirements for Basic Payments and to challenge Claims which are deemed inadequate.  In addition, if Baxter challenges a Claim for a Past Infection Payment or a Current Infection Payment, Baxter may submit a request for additional information to the class member. The Court-appointed Special Master will review all challenges, and may request additional information from either party.  The settlement class member will have the opportunity to respond and/or object to such challenges and/or information requests. The Special Master will issue a written decision, which may be reviewed by the Court.  Detailed instructions for the challenge process are in Attachment B attached to this Notice

          (4) Baxter’s Right to Challenge Applications for Additional Payments. If Baxter deems an application for an Additional Payment inadequate, Baxter may: (1) request additional medical documentation or responses to written questions; (2) submit the application form and medical records to a physician; (3) conduct an interview of the Recipient and/or settlement class member; and/or (4) require the Recipient to submit to a new medical examination. Generally, Baxter also has the right to challenge applications which are deemed inadequate. The settlement class member will have the opportunity to respond and/or object to such challenges. The challenge will be decided by a three-person panel of health care professionals. The decision of the panel may be entered as a judgment of the court, and may be challenged solely on the grounds specified in Sections 10 and 11 of the Federal Arbitration Act (9 U.S.C. §§ 10-11). The fees and costs of the panel will be paid by Baxter, unless the panel denies the application and also finds that the application was either frivolous or presented without a good faith belief that the Recipient qualified for the Additional Payment (in which case, the settlement class member shall pay the fees and costs of the panel). Notwithstanding the foregoing, each party is responsible for his or her own attorney’s fees and costs. Detailed instructions for the challenge process are in Attachment B attached to this Notice.

        G.      Payment and Release

          (1) Basic Payments. If a Claim is approved for payment, the Settlement Administrator will make the Basic Payment to the settlement class member; provided, however, that any class member entitled to either a Past Infection or Current Infection Payment must first properly execute a Release in the form in Attachment C attached to this Notice. Any settlement class member who submits an unsuccessful Claim for either a Past Infection Payment or a Current Infection Payment shall nonetheless receive an Exposure Only Payment if it is determined that the Recipient was infused with Gammagard® IVIG during the Window Period.

          (2) Additional Payments. If Baxter does not challenge the application for an Additional Payment, payment will be made by Baxter. If Baxter brings a challenge, and the panel ultimately decides in favor of the settlement class member, the Additional Payment will be made within 30 days of the decision. Such payment will include interest at the rate of 6% per annum simple interest from 150 days after the submission of the application for Additional Payment.

IV.   CLAIMS ADMINISTRATION

        A.      Settlement Administrator

          After consulting with the parties, the Court has appointed Navigant, Inc. as the Settlement Administrator. The Settlement Administrator will, with the assistance of claim officers and employees, be responsible for processing and evaluating claims. The Settlement Administrator is not permitted to give legal advice. The Settlement Administrator will be subject to the continuing jurisdiction of the Court and subject to Court review.  Baxter will be responsible for the Settlement Administrator’s costs.

           If you elect to participate in the settlement, your principal contact will be the Settlement Administrator. All forms and supporting documents will be submitted to the Settlement Administrator for initial processing. The Settlement Administrator can be contacted by:

1. Writing:
   
   Settlement Administrator
   Gammagard® IVIG Settlement
   P.O. Box 131620
   Dallas, TX 75313
   
   
2. Calling Toll Free: 1-888-921-4776.

           In addition, the Settlement Agreement, Forms, and settlement updates will be posted to the settlement class internet site (http://www.hcv-claims.com).

           Please do not contact the Court. The Court is not equipped to answer your questions concerning the settlement or individual settlement claims.

        B.      Filing of Claims and Applications

           The deadline for exclusion from (opting out of) the settlement is June 30, 2000. The deadline for filing Claim Forms for Basic Payments is also [Date]. Applications for Additional Payments may be filed at the same time as Claims for Basic Payments, but there is no deadline. Only the Forms enclosed in the Information Packet may be used to submit Claims for Basic Payments and applications for Additional Payments.   Additional copies may be obtained from the Settlement Administrator or the settlement class internet site (http://www.hcv-claims.com). The instructions and requirements for filing Claims and applications are detailed in the enclosed "Instructions for Participating in the Gammagard® IVIG Class Action Settlement." It is important to read these instructions carefully, and to begin preparing the Forms as soon as possible, to ensure that the Forms and documents are filed correctly and timely.

        C.      Maintenance of Records

           The Settlement Administrator shall sign a confidentiality statement with respect to all information concerning settlement class members, subject to Class Counsel’s and Baxter’s rights to review and/or obtain such information.

          After all Claims for Basic Payments and related applications for attorneys’ fees are resolved and paid, the Settlement Administrator shall close all administrative facilities, preserving for future availability all documents and records that may be relevant to potential applications for Additional Payments. After the Settlement Administrator is closed, Baxter will continue to receive and process all applications for Additional Payments.

V.    EXCLUSION FROM OR OPTING OUT OF THE SETTLEMENT

           Participation in this settlement is optional, not mandatory. If a settlement class member wants to exclude him/herself from or opt out of the settlement class, he/she must submit a written and signed request for exclusion, postmarked on or prior to June 30, 2000, to:

Settlement Administrator
Gammagard® IVIG Settlement
P.O. Box 131620
Dallas, TX 75313

           The request for exclusion must be signed by (1) the settlement class member, except that a parent or legal guardian must sign for a settlement class member who is a minor or who is not otherwise legally competent to contract, and (2), if any, the settlement class member's attorney. If a timely request for exclusion and a timely Claim are submitted by or relating to the same Recipient, the Settlement Administrator shall attempt to contact the settlement class member(s) who filed the conflicting documents to determine if one of the documents will be withdrawn. In the absence of such withdrawal, the Claim shall be disregarded by the Settlement Administrator.

          Any person who submits a timely request for exclusion shall not be barred by the final judgment entered in this litigation and shall retain whatever rights that person may have to proceed with claims against Baxter relating to alleged exposure to, and/or infection with, HCV arising out of the use of Gammagard® IVIG. The statute of limitations applicable to such claims shall be tolled from November 22, 1994, until the date of the request for exclusion.

VI.   SETTLEMENT APPROVAL HEARING ON SEPTEMBER 22, 2000

           The Court will hold a hearing on September 18, 2000 at [Time] at the United States District Court for the Central District of California, Courtroom [No.], 312 North Spring Street, Los Angeles, California 90012, to determine whether the proposed settlement is fair, reasonable, adequate, and in the best interests of the class. The Settlement Approval Hearing may be adjourned from time to time by the Court without further notice. Notice of any such adjournment may only be provided by announcement at the hearing.

           At the hearing, any settlement class member may appear in person or by counsel and be heard to the extent allowed by the Court in support of, or in opposition to, the fairness, reasonableness, and adequacy of the settlement or any of the other matters  to be considered by the Court; provided, however, that in no event will a person be heard unless, on or before [Date] (hand delivered or postmarked), such person files with the Clerk of the Court, United States District Court for the Central District of California, 312 North Spring Street, Los Angeles, California 90012, the following documents:

1. notice of such person's intention to appear
   
   
2. a detailed statement that describes the specific grounds to be raised; and
   
   
3. any supporting documentation that such person desires the Court to consider, including any memorandum or brief.

           DO NOT CALL THE COURT. ALL REQUESTS MUST BE IN WRITING.

           At the same time, copies of such documents shall be served in person or by mail upon each of the following attorneys:

           Any person who fails to object in the manner provided herein shall be deemed to have waived his/her objections and shall be forever barred from making any such objections in this litigation.

VII.   EFFECT OF FINAL APPROVAL; BAR ORDER

           If the Court grants final certification of the settlement class and final approval of the Settlement Agreement, a final judgment pursuant to Federal Rule of Civil Procedure 54(b) shall be entered forever barring every settlement class member (other than persons who have or are deemed to have excluded themselves from or opted out of the settlement), from prosecuting any past, present or future, known or unknown claim or lawsuit against Baxter relating to alleged exposure to, and/or infection with, HCV arising out of the infusion, administration, receipt, or use of or contact with Gammagard® IVIG within the Window Period. The terms of such final judgment have the same effect as if such persons had executed appropriate releases.

           The bar and release in favor of Baxter extends to all of its past, present, and future corporate parents, subsidiaries, divisions, affiliates, assigns, partners, and joint ventures, as well as all suppliers, distributors, pharmacies, medical providers, and other persons or entities, and also including all shareholders, directors, officers, employees, agents, servants, persons, insurers, reinsurers, and counsel for each of the foregoing as well as their predecessors and successors.  This bar and release extends to parties other than Baxter, including claims which a settlement class member may have against a doctor or other medical provider.

VIII.   ATTORNEYS’ FEES AND EXPENSES

        A.      Class Counsel Fees and Expenses

           At the Settlement Approval Hearing, Class Counsel will ask the Court for an award of attorneys' fees not to exceed $18,000,000.00 and for reimbursement of expenses not to exceed $3,000,000.00, to be paid by Baxter. Baxter has not agreed to a particular amount, but has agreed that it will pay Class Counsel fees and expenses as ordered by the Court. The payment of attorneys’ fees and expenses to Class Counsel will not reduce any payment to settlement class members. Settlement class members will NOT be individually responsible for Class Counsel’s attorneys’ fees and expenses. However, each class member is individually responsible for any legal fees and expenses for an individual attorney-client relationship, subject to the exceptions in the following section.

        B.      Individual Counsel Fees and Expenses

          (1) Basic Payments. If a settlement class member retains an attorney in connection with the submission of a Claim for either a Past Infection Payment or a Current Infection Payment or in connection with any challenge by Baxter, such attorney may submit an application for reasonable fees and costs to be paid from the Settlement Fund upon approval by the Special Master. Such applications may be made regardless of whether a challenge by Baxter is ultimately allowed or rejected; provided, however, that the reasonableness of the positions asserted by such attorney in connection with the Claim shall be considered when evaluating the application. Consistent with the foregoing, the Special Master may award attorneys’ fees and costs under such terms and conditions as the Special Master deems fair and just, and that decision is reviewable by the Court.

          (2) Additional Payments. An attorney who assists a settlement class member in connection with the submission of an application for an Additional Payment may not seek attorneys’ fees and costs to be paid from the Settlement Fund for such assistance, unless such application for Additional Payment is made at or before the time of the submission of the Supplemental Medical Information Form required in connection with the class member’s Claim for a Basic Payment. In the latter situation, the attorney may submit the request for attorneys’ fees and costs to the Special Master. The Special Master may award reasonable attorneys’ fees and costs under such terms and conditions as the Special Master deems fair and just, and that decision is reviewable by the Court.

        C.      No Contingent Fees for Basic Payments

          No attorney shall be entitled to any contingent share of any Basic Payment.

IX.   EXAMINATION OF SETTLEMENT AGREEMENT AND OTHER DOCUMENTS

           This Notice does not purport to be a complete description of the litigation, the Settlement Agreement, or the terms of the settlement. For a more detailed statement of the matters involved in the litigation, reference is made to the pleadings, to the Settlement Agreement, to the orders entered by the Court, and to the other papers filed in the litigation, which may be inspected at the Office of the Clerk of the Court, United States District Court for the Central District of California, 312 North Spring Street, Los Angeles, California 90012, during business hours of each business day.   Please note that the Clerk's Office is not permitted to give legal advice. The Settlement Agreement also may be obtained from the Settlement Administrator or viewed on the settlement class internet site (http://www.hcv-claims.com).

X.   CONTACT CLASS COUNSEL

           Class Counsel are available to answer questions and provide information at no cost to settlement class members. Class Counsel may be contacted at:

John C. Evans, Esq. David J. Manogue, Esq. SPECTER SPECTER EVANS & MANOGUE, P.C. The 26th Floor Koppers Building Pittsburgh, PA 15219 (412) 642-2300 (Lead Class Counsel)

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   last updated 09/19/2000   bloodbook.com