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Pharmaceutical Companies Face $9B In Punitive Damages For Concealing Cancer Risks

A Japanese drug maker is facing higher punitive damages for allegedly concealing the cancer risks associated with a diabetes drug than those dished out in the past by federal juries.

The $6 billion in damages leveled against Takeda Pharmaceutical overshadow the $5 billion once imposed against Exxon Mobil Corp for the Exxon Valdez oil spill in 1989. But don’t expect that number to stick as the company says it plans to contest the damages, Reuters reports

Takeda and co-defendant Eli Lilly promoted Actos, a diabetes drug, without making clear the possibility of cancer risks associated with the drug.

“We intend to vigorously challenge this outcome through all available legal means, including possible post-trial motions and an appeal,” Kenneth Greisman, general counsel of Takeda Pharmaceutical, says in a statement.

For its part Eli Lilly, who takes 25% of liability in the case, was ordered to pay $3 billion in punitive damages. The company says in a press release that it will be indemnified by Takeda for its losses and expenses around the litigation, and also plans to challenge the outcome of the case.

The plaintiffs’ lawyer in the case says it was not certain whether the damages award would be sustained as the legal process continues.

The $9 billion in combined punitive damages awarded against the companies exceeds the massive penalty previously handed down to Exxon Mobil Corp following the Exxon Valdez oil spill.

However those damages were reduced in 2008 when the U.S. Supreme Court ruled the award had been “excessive.” The company ultimately paid $500 million.

Punitive damages are awarded to discourage other companies from bad conduct, while compensatory damages are meant to pay victims for their actual losses.

In the most recent case, the jury awarded the payment of $1.475 million in compensatory damages to victims of the pharmaceutical companies.

Reuters reports the jury deliberated for an hour and 10 minutes before delivering its verdict, and another 45 minutes to come out with the multibillion-dollar punitive damages.

This isn’t the first case against Takeda, but it’s a markedly different outcome.

Last May, a U.S. judge nullified a jury verdict for $6.5 million against the company after ruling the plaintiffs failed to offer reliable evidence that Actos caused cancer.

Japan drug maker Takeda to fight $6 billion damages imposed by U.S. jury [Reuters]

by Ashlee Kieler via Consumerist

Oh Good: More Mazda Vehicles Infested With Spiders

yellowsac Hey, remember when a bunch of Mazda 6 vehicles were recalled back in 2011 because spiders had a tendency to infest the fuel lines and build webs, resulting in a few cracked fuel tanks and lots of nightmares? Well, it’s happening again: 46,000 more Mazda6 vehicles have been recalled. (Warning: there is a larger-than-life photo of the relevant spider species inside this post.)

Again, there’s just something about Mazda fuel lines that yellow sac spiders can’t resist. The NHTSA recall bulletin says that the spiders may weave webs in the fuel line, which is problematic for the gas tank. “In the affected vehicles, spiders may weave a web in the evaporative canister vent hose, blocking it and causing the fuel tank to have an excessive amount of negative pressure,” they explain. End result? Cracked gas tanks, gas leaks, and a risk of fire. Fire caused by spiders.

The affected model is the Mazda6, years 2010, 2011, and 2012. If you own one of these cars, call Mazda at 1-800-222-5500. The solution involves a software update.

A software update to prevent fires caused by spiders. We really are living in the future.

RECALL Subject : Spiders may Block Fuel Tank Vent Line [NHTSA]

by Laura Northrup via Consumerist

Reminder: If You’re Still Running Windows XP, Microsoft Is No Longer Providing Support

(anapbuhay)

If you’re reading this on a computer running Windows XP, you’re either the overconfident sort that thinks you’ll never get hacked or you’ve forgotten that today is the day Microsoft is dropping its support for the product. In either case, it’s time to upgrade or face security risks you don’t need to be taking.

This really shouldn’t come as a surprise, as Microsoft has been warning PC users and ATM makers alike that doomsday was fast approaching. Although not all of the ATMs in the world have upgraded, many banks are paying extra for extended support.

Those with outdated software by this time are leaving plenty of room for cyber attacks, and it’s not just your Great Aunt Dottie on her ancient PC — there are also other industrial software systems running on XP, points out CNNMoney, including major hospitals and point-of-sale systems at retail stores.

“It’s literally everywhere still,” a chief scientist at cybersecurity firm Cyclance tells CNNMoney. “Every point that’s running XP is ripe for worms. They haven’t been much of a common occurrence in modern times, but any new vulnerability could result in mass infection with very little remediation.”

All you need to do is upgrade. Or live with the fact that Windows XP computers are six times more likely to get infected, as per Microsoft’s reckoning. Ah, living on the edge.

Microsoft drops Windows XP support [CNNMoney]

Follow MBQ on Twitter for all the latest exciting news about this that and the other thing: @marybethquirk</em>

by Mary Beth Quirk via Consumerist

Study Finds Produce, Restaurants Most Likely To Give Consumers Foodborne Illnesses

(Listener42)

There’s now another compelling reason to eat at home rather than going out. And if you’re preparing a meal at home make sure you wash your produce. A new report from the Center for Science in the Public Interest finds that consumers are twice as likely to get food poisoning from food prepared at a restaurant than food prepared at home, and illnesses at home are most often linked to our love of all things produce.

The report “Outbreak Alert! 2014″ [PFD] found that 1,610 outbreaks in restaurants sickened more than 28,000, whereas only 893 outbreaks causing 13,000 cases of illness were linked to private homes.

Researchers with the nonprofit safety group analyzed 10,409 solved outbreaks of foodborne illnesses reported to the Centers for Disease Control and Prevention over a 10-year period. A case is considered solved when both a food and a pathogen were identified by investigators.

By examining outbreaks, a cluster of two or more illnesses resulting from the same contaminated food source, researchers were able to provide analysis of foodborne outbreak and illness trends.

The study found oversight from different agencies varied when it came to foodborne illnesses. Fresh produce, seafood, and packaged foods regulated by the Food and Drug Administration were responsible for more than twice as many solved outbreaks as meat and poultry products, which are regulated by the U.S. Department of Agriculture.

However, that statistic could change now that the new FDA Food Safety Modernization Act was signed into law in 2011. The Act gives the agency the authority to conduct more frequent inspections of food processing facilities.

Produce accounted for the largest number of outbreaks, 667, causing 23,748 illnesses. The second most common category linked to outbreaks was seafood. However, of the 602 outbreaks linked to the category only 5,317 illnesses were reported.

Produce, seafood, poultry, and beef were responsible for the largest number of foodborne illnesses during the study. However, over the decade outbreaks and illnesses linked to the four categories decreased significantly.

Instead, reports of outbreaks and illnesses associated with dairy products increased as the decade went on. Researchers say an increase in popularity of unpasteurized dairy products could be to blame.

CSPI found that raw-milk caused 70 percent of the 104 outbreaks linked to milk products. So, although less than 1% of consumers drink raw milk, they bear 70% of the burden of illnesses caused by milk-bourne outbreaks.

“Pasteurization of milk is one of the most important public health advances of the last 100 years, sparing countless people from infections and deaths caused by Salmonella, E. coli, and Listeria,” Sarah Klein, CSPI senior food safety attorney, says in a news release. “Consumers should avoid raw milk, and lawmakers should not expand its availability.”

Additionally, CSPI found a trend of decreased reporting of foodborne illnesses as the study progressed.

States reported 42% fewer outbreaks to the CDC in 2011 than they did when the study began in 2002.

However, researches warn that fewer reported outbreaks doesn’t mean that fewer consumers are getting sick. Instead, they say the recession, influenza pandemics and post-9/11 bioterrorism investments have all diverted state public health budgets and attention away from identifying outbreaks and determining their causes.

“Underreporting of outbreaks has reached epidemic proportions,” Caroline Smith DeWaal, CSPI food safety director, says in a news release. “Yet the details gleaned from outbreak investigations provide essential information so public health officials can shape food safety policy and make science-based recommendations to consumers. Despite the improvements in food safety policy in the past decade, far too many Americans still are getting sick, being hospitalized, or even dying due to contaminated food.”

Restaurants Pose Twice the Risk of Foodborne Outbreaks as Homes, Data Show [Center for Science in the Public Interest]

by Ashlee Kieler via Consumerist

15 Things People Of All Ages Need To Know About Long-Term Care Insurance

(Evan)

Welcome to the fourth installment in a “How To Not Suck…” series on buying insurance. Previous posts looked at auto insurance, homeowner’s coverage, and life insurance, and next week we’ll look at disability plans.

No one wants to think they’ll be unable to take care of themselves, but it’s likely to happen eventually, with one study saying there’s a 70% chance you’ll need some kind of care after age 65. Today, we’re thinking to the future. Long-term care insurance will help pay the bills should you need some kind of care, so you had better learn How To Not Suck… At Long-Term Care Insurance.

And this kind of care isn’t just for older folks. You could be in an accident or have an debilitating illness and need help. In fact, 40% of those who receive long-term care are under 65.

And we’re not talking about a long weekend. The average need for care is 1,040 days, according to the American Association for Long-Term Care Insurance

So who pays for the cost of care?

You will, unless you have long-term care insurance, or LTC insurance.

Here are 15 things you may not know — or that you need to know — about LTC insurance.

1. Medicare won’t cover the cost for most long-term care scenarios.

It will cover the kind of skilled short-term nursing care you might need after a hospitalization or an accident, but it won’t pay for permanent assistance. Medicaid will cover nursing home care, but only for those with limited assets, and you won’t have much say about what facility you’ll go to if Medicaid is paying the bills.

2. LTC insurance can be expensive, but paying outright for care is costlier.

The median cost for a home health aide for eight hours a day is $44,000 a year, and nursing home care in a private room averages $84,000 a year, according to a 2013 Genworth study. Some parts of the country are even more expensive. (Check this map to see the cost of care in your area.)

3. It’s not just nursing homes.

Lots of different kinds of care are covered by LTC policies. Each policy will spell out the details, but most will cover home health aides, assisted living, nursing homes and even adult day care..

4. You’re not too young.

Like life insurance, the younger you are, the cheaper the policy will cost. Maybe you don’t need a policy in your 20s and 30s, but start thinking about it when you’re in your 40s. If you wait too long, your health could change and make a policy more expensive, or you could even become uninsurable.

5. Your employer may offer LTC insurance at a less expensive group rate…

But many policies are not portable, meaning you can’t take them with you after you leave your job. If you want a group rate, check with your professional associations or alumni groups to see what’s offered.

ITEMS 6-13: TERMS YOU NEED TO KNOW

(Apologies in advance for the insurance jargon in the next several items, but any policy you consider will be filled with terms you need to understand before you buy.)

6. Daily or Monthly Benefit Period:

This is the amount of money your policy will give per day or per month for care. Also know the lifetime cap on your policy.

7. Inflation Rider:

This will increase the cost of your policy, but it’s well worth it. An inflation rider means the benefit you receive will rise with the cost of living. Think about what care may cost in 20 or 30 years. Scary, indeed.

8. Elimination Period:

This is the amount of time that must pass before your policy pays on a claim. Ninety days is common (so you’d pay for care for 90 days before the policy kicks in) but taking a longer elimination period will lower the cost of your policy.

9. Shared Benefits Rider:

This is a product made for married couples. It allows you to share your benefits with your spouse. For example, if your spouse uses up all his benefits, he can dip into yours.

10. Paid Up Premiums:

If you have a fat wallet today, you can opt to pay higher premiums for a set time period, say, 10 years, and at the end of that time frame, the policy is paid up and you won’t owe anything more in your lifetime. This is also called an accelerated premium option.

11. Free-Look Period:

This is essentially a buyer’s remorse clause. If you decide you don’t like, don’t want, or regret the policy you purchased, you usually have 30 days to change your mind and get a full refund.

12. Non-forfeiture/Guaranteed Renewability:

The non-forfeiture provision will help you if the insurance company decides to increase the cost of your policy. You’ll be able to keep your policy in effect, but for a smaller benefit, rather than it be cancelled outright. A policy that’s deemed to have guaranteed renewability means the insurance company can’t increase your premiums unless all similar policies in your state get an increase. It can’t be cancelled, either.

13. Exclusions:

Because nothing in life is easy, some reasons for needing care may be excluded from your policy. Self-inflicted injuries, alcohol and drug abuse and some mental illnesses are generally excluded.

14. If you’re thinking about a policy, get your spouse on board.

You could save as much as 40 percent if you both opt for the insurance.

15. There are some tax incentives available to offset to cost of LTC policies.

There are partnerships between some states and private insurers, you may be able to deduct premiums as part of your medical expenses on federal returns and some states offer similar incentives.

Also make sure you work with an insurance company that will be around in 20 or 30 years when you may need to make a claim. Imagine paying all those years and getting nothing? Egads.

To learn more about the costs, check out the American Association for Long-Term Care Insurance.

Next week: Our insurance series wraps up with a look at the essentials of disability coverage.

Have a topic you’d like to see covered in How To Not Suck? Or maybe you’re an expert who would like to share your insight with Consumerist readers? Send us a note at notsuck@consumerist.com.

You can read Karin Price Mueller’s stories for The Star-Ledger at NJ.com, follow her on Facebook, and on Twitter @kpmueller.

DISCLAIMER: Any websites, services, retailers, or brands mentioned in the story above are only intended as some of many options available to consumers, and do not constitute an endorsement by Consumerist, Consumerist Media LLC (CML) or its staff. Per Consumerist’s No Commercial Use Policy, such information may not be used by others in advertising or to promote a company’s product or service. In addition, this policy precludes any commercial use of any of CML’s published information in any form, or of the names of Consumers Union®, Consumer Media, Consumer Reports®, The Consumerist, consumerist.com or any other of CU or CML’s publications or services without CU or CML’s express written permission.

by Karin Price Mueller via Consumerist

Netflix’s New 4K Streaming: Watch Kevin Spacey Or Big Cats Chasing Down Prey

Remember CES?

While me, you and most likely everyone you know probably doesn’t own an Ultra HD 4K TV, for those that do own the newer, 2014 models, Netflix says it’s just started streaming 4K content, as expected. Which means yes, you can get up close and personal with Kevin Spacey’s face(y), if that’s your thing. No judgment.

It’s the first major non-proprietary 4K content to become available, notes CNET, and because it’s Netflix, that includes its original series House of Cards along with “some nature documentaries.” So that’s why I’m going to guess — there’s no guarantee and that headline is mostly for fun — that there will be big cats and animals running away, because that’s what I think of when I think of nature documentaries.

Anyway the 4K streams are only viewable on 4K TVs from this year, which is most of the sets announced at CES earlier this year.

Before this new spate of Netflix material, anyone with a 4K TV looking for 4K content were kind of out of luck, besides those using Sony’s video players on Sony 4K TVs, or a small smattering of YouTube clips.

And if you do own a 2013 4K TV, you won’t be able to watch the streams coming from Amazon, Comcast, Fox and others later this year, unless the set can be upgraded to handle HEVC (high efficiency video coding). No Spacey facey for you otherwise, at least not in ultra HD.

Netflix begins 4K streams [CNET]

by Mary Beth Quirk via Consumerist

Discover Settles Lawsuit Over Unsolicited, Prerecorded Phone Calls For $8.7 Million

(royalconstantinesociety)

Because no one loves getting an robocall from a credit card company without first signing up for such a phone call — and let’s face it, who would sign up for that on purpose? — a court has settled a class-action lawsuit against Discover Financial Services for auto-dialing people who definitely didn’t want to be called.

The lawsuit, which was filed in 2012, was finally settled by a U.S. district judge for $8.7 million, reports the Chicago Tribune. About eight million potential members are involved in the case and will receive either a cash reward or a boost on their credit card balances.

The plaintiffs at the forefront of the case pointed out that in 2007, the Federal Communications Commission cited Discover for making “prerecorded telephone calls to consumers who had not expressly invited or authorized the calls.”

The FCC warned the company that it would face fines of up to $11,000 for each violation or each day, the lawsuit said. But one of the plaintiffs claimed that after he got a Discover card in January 2011, he started getting calls on his cell phone less than a year later, in violation of the Telephone Consumer Protection Act.

“The court concludes that the settlement agreement is fair, reasonable and adequate,” the judge wrote, adding in an extra award of $2.2 million for attorneys’ fees and costs and $2,000 for each named plaintiff.

The law firm that brought the case seems content with the outcome — after all, those phones aren’t ringing now (we hope).

“For many, the primary goal was to put an end to these phone calls,” the law firm said.

Discover settles ‘auto-dial’ case for $8.7 million [Chicago Tribune]

by Mary Beth Quirk via Consumerist

Uber Tired Of Customers Using Cars As Couriers, Begins Testing Actual Courier Service

(Kat N.L.M.)

One could argue that Uber is a type of courier service, right? They’ve delivered Christmas Trees, kittens to brighten your day and of course shuttled you across the city. Well, you won’t have to argue the merits of that point anymore now that the company has officially began testing Uber Rush – an actual courier service.

The new service operates much like a traditional courier service and uses the Uber app technology already at play with the company’s car service, Bloomberg Businessweek reports.

The ability to easily traverse Manhattan without cars made it the ideal city to test the new service, Uber officials say. If things go well the service would first expand to additional New York City boroughs and then possibly other large cities.

While officials with the company wouldn’t say how many couriers they have on the roster, they say it’s enough to make delivery reliable. However, the company is currently recruiting bicycle and pedestrian messengers to deliver your packages.

Prices for the service range from $15 to $30, depending on how far the item must travel. As always, Uber takes their standard 20% commission for each delivery.

Launching the new service seemed like a reasonable next step for the company, officials say.

“No one was getting it quite right on the messenger service piece, and we were seeing people use Uber cars to move things,” says Josh Mohrer, Uber’s general manager in New York, tells Bloomberg.

So how does the new service stack up against the old standbys? Not too bad, as it turns out.

A Bloomberg reporter enlisted Uber Rush’s services to deliver a test package containing a book, a granola bar, and a dollar bill from the Bloomberg office at East 59th Street and Lexington Avenue to a friend who works near Battery Bark City.

The delivery was quoted at $25 and promised to be delivered within 90 minutes.

Ten minutes after putting out the call on the Uber app a courier showed up at the Bloomberg offices, although without a helmet.

After a little research the reporter found the prices were slightly higher than standard courier rates, but lower than rush rates.

All in all, the package was delivered to the friend’s office building intact within 90 minutes of pick-up.

Uber Expands Into Courier Service WIth Manhattan-Only Pilot [Bloomberg Businessweek]

by Ashlee Kieler via Consumerist

Congratulations To Comcast, Your 2014 Worst Company In America!

(Knight725)

Four years since winning its first Worst Company tournament, Comcast’s doubted that the Kabletown Krusher could ever regain that 2010 form. But after a few years of letting others hold the title, Comcast was fiercely intent on bringing a second Golden Poo to its Philadelphia lair. And in one of the narrowest Final Death Matches in the centuries’ long history of WCIA battle, Comcast managed to hold the genetically modified body blows of Monsanto.

From the onset of the day-long bout, lawsuit-lovin’, herbicide-makin’ Monsanto was within striking distance of the Philly Kid, but Comcast gained a hair-thin edge early on and never ceded the lead.

Comcast’s road to the Poo started out without a speedbump, as the company powered through the first three rounds without ever giving up more than 30% of the vote. And with two-time reigning champ EA eliminated in Round One by Comcast’s merger partner Time Warner Cable, followed by three-time consecutive runner-up Bank of America’s surprise defeat at the hands of Walmart, Comcast seemed destined for the Final Death Match.

But the nation’s largest cable and Internet provider (which is trying to become even larger), almost got stopped in its track by first-time contender SeaWorld, riding high on waves of negative publicity tied to the documentary Blackfish. Comcast pulled off a buzzer-beater to hold off SeaWorld and earn its place in the Final Death Match.

Comcast’s win makes it only the second company to claim multiple Poos. Last year, video game biggie EA was both the first two-time winner and its first repeat champ.

And so that’s it for WCIA 2014. See you again next year!

PS: Here is the full bracket from this year’s tournament:

by Chris Morran via Consumerist

Did You Turn In A Lost Diamond Ring At Newark Airport? There’s A Free Flight Waiting For You

(PIX 11 News)

Most of the time, when you find something that’s not yours and you turn it in, it’s not like you’re expecting a huge thank you, a burst of applause or a ticker tape parade. You do the right thing because it’s the right thing — but if you did happen to turn in a lost diamond ring at Newark Airport? You’ve got a free flight.

It’s a mystery that once solved, will result in a free $500 flight voucher for whoever the Good Samaritan was that found the 4-carat ring on Valentine’s Day this year, reports the New York Post .

The 52-year-old woman who accidentally dropped it that day during security screening didn’t even realize it was gone until she was already on a plane to London. Many might’ve bidden the bauble goodbye, but someone found it and turned it into a Transportation Security Administration officer.

“I was amazed by the honesty,” the owner told the NYP. She called the TSA upon landing and was successfully reunited with her ring, a 25th anniversary pressent from her husband. “It’s unheard of.”

Now the Global Gateway Alliance wants to find this mysterious do-gooder and give him or her a round-trip flight voucher from United Airways for being so honest. If it’s you, you can email ring@globalgatewayalliance.org and include proof of travel date and time. The TSA will then verify you’re the right one using security footage. You’ve got until May 31, at which time the prize will go to charity.

“While all of us wait in long lines, struggle with security protocols and hear horror stories of thefts by airport workers, it’s important to know that our fellow travelers have our backs and TSA agents work hard for passengers,” said Alliance Chairman Joseph Sitt.

Who returned diamond ring? Airport group wants to know [New York Post]

You can follow MBQ on Twitter where you will likely find zero diamond rings: @marybethquirk

by Mary Beth Quirk via Consumerist