Payout of $765M NFL Concussion Settlement Close at Hand

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The judge overseeing multidistrict litigation (MDL) involving NFL concussion lawsuits has appointed a special master to help oversee the payout of $765 million to thousands of former players who sued the league for failing to protect them from the long-term effects of concussions.

On Dec. 15, U.S. District Judge Anita B. Brody assigned special master Perry Golkin to perform financial analysis of the NFL concussion class action settlement, which she said would be complex. According to his legal alma mater, the University of Pennsylvania Law School, Golkin is currently the CEO at Public Pension Capital Management after spending time at private equity giant Kohlberg Kravis Roberts & Co. and as a corporate lawyer at white-shoe law firm Simpson Thacher and Bartlett.

Roughly 4,000 players, or one-third of the total number of NFL retirees, have joined the consolidated class action lawsuit against the league since 2011. They alleged that the NFL, now headed by commissioner Roger Goodell, was aware of the risks of traumatic brain injury including chronic traumatic encephalopathy and Alzheimer’s Disease, caused by repeated concusssions on the field but misled players and the public about the potential for brain damage and cognitive decline. Recently, several players have committed suicide by shooting themselves in the chest, which allowed scientists to test their brains for signs of chronic traumatic encephalopathy (CTE). CTE occurs when tau proteins build up and affect the brain’s chemistry.

While CTE is the underlying condition that led to the NFL concussion lawsuits, the individual awards from the NFL concussion settlement are based on the diseases that manifested as a result of CTE. According to numerous news reports, the payouts would be $5 million for former players who were diagnosed with Lou Gehrig’s disease or amyotrophic lateral sclerosis, and $3 million for retirees who were diagnosed with Alzheimer’s Disease.

The class action settlement provides for medical testing that would assess what conditions each plaintiff suffers. For Golkin, who will be overseeing the payments and testing, he will receive no direct compensation but will receive $2 million over the course of 20 years to help pay for expenses and other ancillary needs.

As a result of the NFL concussion settlement, the league will pay into the settlement funds but has not admitted any wrongdoing. Instead, the legal team for the NFL has agreed to the terms to avoid further, protracted litigation.

The former players are represented by class action attorneys including David Frederick of Kellogg Huber Hansen Todd Evans & Figel PLLC, Christopher Seeger of Seeger Weiss LLP and Sol Weiss of Anapol Schwartz Weiss Cohan Feldman & Smalley PC.

The NFL Concussion Class Action Lawsuits are consolidated as In Re: National Football League Players’ Concussion Injury Litigation, MDL No. 2323, U.S. District Court, Eastern District of Pennsylvania.

UPDATE: A federal judge rejected preliminary approval of the proposed NFL concussion class action settlement on Jan. 14, 2014, expressing fears that it may not be enough.