By Dominic Rivera  |  May 20, 2014

Category: Legal News

Actos bladder cancerAn Illinois state judge ruled that Takeda Pharmaceutical Co. Ltd. will not be facing sanctions for destroying evidence that its diabetes drug Actos allegedly causes bladder cancer, even though the company breached its duty to preserve custodial files while the Actos lawsuits were ongoing.

Cook County Circuit Court Judge Mary Dooling found that while Actos did have a duty to preserve the files, the surviving spouse of an Actos patient failed to show prejudice as a result of the documents’ destruction and therefore is not entitled to a sanctions order. In reaching this decision, the judge found that plaintiff Diane Whitlach could not show that the documents at issue would have helped her case. Further, Judge Dooling found that sanctioning Takeda would not promote discovery or ensure a fair trial.

“Plaintiff has not demonstrated how she has or will be prejudiced by Takeda’s destruction of the specific documents that are missing,” Judge Dooling said. “Plaintiff’s inability to demonstrate prejudice is fatal to her motion.” The judge noted that while the document destruction issue became known last summer, Whitlach did not file the sanctions motion until two weeks after U.S. District Judge Rebecca F. Doherty reprimanded Takeda for the document destruction in January of this year.

Reports are saying that Takeda’s destruction of documents was likely a reason behind the jury’s decision to impose an astounding $6 billion in punitive damages in the first Actos bellwether trial alleging that the type-2 diabetes drug causes bladder cancer.

The jury found that Takeda and Eli Lilly & Co., which jointly marketed Actos, failed to adequately warn about the drug’s bladder cancer risks. Eli Lilly was ordered to pay $3 billion, although the company said that its marketing agreement with Takeda called for Takeda to challenge itself against losses and expenses in the Actos litigation. According to reports, Takeda has already informed Eli Lilly that it was reserving its right to challenge any obligations to defend and challenge Eli Lilly in the case.

Takeda said that it intends to vigorously challenge the outcome through all available legal means, including post-trial motions and appeal.

“Patient safety is a critical priority for Takeda. We are confident in the therapeutic benefits of Actos and its importance as a treatment for type 2 diabetes,” Kenneth D. Greisman, senior vice president and general counsel of Takeda Pharmaceuticals USA, Inc, said in a statement.

This Actos lawsuit is Whitlatch v. Takeda Pharmaceuticals America Inc., et al., Case No. 12-L-6087. The consolidated case is In re: Actos Litigation, Case No: 11-L-010011, both in the Circuit Court of the State of Illinois, County of Cook.

In general, Actos bladder cancer lawsuits are filed individually by each plaintiff and are not class actions.

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