State opts against suing US pharmaceutical firms

The Government has decided not to take legal action against international pharmaceutical companies accused of contaminating more…

The Government has decided not to take legal action against international pharmaceutical companies accused of contaminating more than 300 Irish haemophiliacs with HIV and Hepatitis C.

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it would be of more benefit to the haemophilia community to concentrate resources on improving services
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Department of Health statement

The Tanaiste Mary Harney said the Government had made its decision based on expert legal advice not to proceed with the case.

The Health Minister said that although the Government acknowledges the terrible tragedy which befell patients, litigation would serve no useful purpose.

The Irish Haemophilia Society has expressed its grave disappointment at the decision, claiming legal action would finally answer questions as to who was responsible for this appalling case.

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In total 106 Irish people with haemophilia were infected with HIV following treatment from international pharmaceutical companies - 67 of these have died.

A further 221 patients were infected with Hepatitis C - 91 of which have since died. Some of the dead had been infected with both HIV and Hepatitis C.

Mrs Harney said: "The Government acknowledges the terrible tragedy which befell Irish residents whilst availing of clotting factor products but is convinced that no useful purpose would be served by the proposed litigation.

"The Government believes that it would be of more benefit now to the haemophilic community to concentrate resources on improving services to persons with haemophilia, including those infected with Hepatitis C and HIV rather than litigation or another inquiry into the matter, with no prospect of either action having a satisfactory outcome."

Legal experts from both the United States and Ireland have advised the Government that the state would not be successful in winning a case in either jurisdiction.

Despite the decision, individual sufferers can still pursue legal action directly against the companies concerned. Some are believed to be taking action at the moment.

More than €250 million of compensation has been already paid out to sufferers. The Government's legal bill has totalled €45 million, which includes €250,000 on the current legal advice.

The Irish Haemophilia Society maintains it was given numerous commitments over the years that an enquiry would be pursued into the US Pharmaceutical Companies which supplied the treatments and action taken.

It also claimed the companies concerned not only accepted blood and plasma donations from high risk donors but actively encouraged such donations from groups including prisoners.

"Legal action taken against these companies by the Irish Government would help to finally answer the questions as to who was responsible for this appalling loss of life," said chief executive Brian O'Mahony.

Ms Harney said the three US companies are involved in the scandal - Armour Cutter Miles, Travenol-Baxter, Immuno International - have all changed their names several times over the years.

She said other countries had had their claims dismissed from the US courts, but added if any funds had been seized through the legal process it would have compensated the Government's loss and not sufferers.

"All legal views were unanimous," she said. "If the Government went against that legal advice people would question why we did that. We were strongly advised not to proceed with legal action."

The Tanaiste added that another enquiry would not establish any new facts as it is not known which particular treatments infected which groups of people.

Mr O'Mahony continued: "The cost to the Irish State for providing treatment, medical care and compensation for persons with haemophilia affected by HIV and Hepatitis C has reached some hundreds of millions of pounds.

"If legal action was taken in the States against these companies, and was successfully, the Irish taxpayer could recoup all of the costs spent to date.

"This would go a long way towards building, for example a new Children's Hospital," he added.

The Government also came under fire for refusing to take legal action on a "no foal, no fee" basis, where the financial risk of an unsuccessful action would have been taken by a US legal firm with no potential cost to the Government.

"There will be a palpable sense of anger and upset amongst the members of Irish Haemophilia Society when they are informed that the Government will breach the commitments given," continued Mr O'Mahony.

"The Government have refused to hold the promised inquiry, they have refused to take legal action."

He called on the state to pursue the truth and to recoup these significant sums of money for the Irish taxpayer and demanded the Tanaiste provide the society with a copy of their legal advice from both US and Irish lawyers.

Some 17 legal firms in the US were approached by the Government before one could be found without a conflict of interest. Jenner and Block of Chicago were eventually retained.

Advice not to proceed with the case highlighted a number of factors including that by the 1990s Ireland ought to have known bloods were infected, and rules prohibiting double recovery would prohibit the state from seeking compensation on behalf of people who had already received funds in Ireland.

It is also the view of Irish Counsel that the vast bulk of the damages that would make up a claim would be too remote for recovery.

Ms Harney said no country has done more to look after those infected from this terrible tragedy.

"I want to assure the haemophilia community that my department and I will continue to work in close co-operation with the Irish Haemophilia Society to ensure that every possible support is provided to persons who are infected with HIV and Hepatitis from the administration within the state of infected blood products," she added.