Diageo Shells Out $81M To Settle Aussie, NZ Thalidomide Suits

Law360, New York (December 2, 2013, 5:00 PM EST) -- Diageo PLC agreed Monday to pay AU$89 million (US$81 million) to settle class action claims brought by Australians and New Zealanders with birth defects allegedly caused by the morning sickness drug thalidomide.

The U.K.-based alcohol producer's agreement resolves two class actions brought in Australian court on behalf of more than 100 people who suffered birth defects and other injuries after their mothers took thalidomide during pregnancy, according to the law firms Slater & Gordon and Gordon Legal, which represent the victims.

Distillers Co. Ltd., which was later acquired by Diageo, distributed the drug in Australia and New Zealand around 1960 and...

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