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Australia, NZ thalidomide victims win US$81m settlement

More than 100 people in Australian and New Zealand who suffered birth defects caused by the drug thalidomide win US$81 million settlement

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Thalidomide survivors Lynette Rowe (front) and Monica McGhie followed by lawyers and family leave the Supreme Court in Melbourne, Australia, on Monday. Photo: EPA
Reuters

More than 100 Australian and New Zealand victims of thalidomide have won an A$89 million (US$81 million) settlement from the parent of the company that distributed the drug that caused thousands of birth defects around the world.

Thalidomide, a popular drug for morning sickness about 50 years ago, damaged unborn children when taken in early pregnancy.

Diageo PLC agreed to settle two class-action lawsuits brought on behalf of Australian and New Zealand victims in the Supreme Court of Victoria, law firm Slater & Gordon said on Monday.

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The lawsuits were filed against German drugmaker Grünenthal, which invented and produced thalidomide, and companies associated with UK Distillers, which Diageo bought in 1986.

Diageo agreed to pay compensation to a lead plaintiff in July last year, followed by lengthy negotiations for other victims.

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“It has been difficult and challenging litigation but this settlement will now see a group of people receive compensation, a result that goes some distance to finally addressing a very grave historic wrong,” said Peter Gordon, a lawyer from Gordon Legal, which conducted the proceedings with Slater & Gordon.

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