Thursday, October 6, 2016

PTO 237 ETHICON MDL 2327 = SETTLEMENT ESCROW = QUALIFIED SETTLEMENT = SECTION 468B of the INTERNAL REVENUE CODE of 1986


ARE YOU A MESH PLAINTIFF AGAINST JOHNSON & JOHNSON - ETHICON IN THE SOUTHERN DISTRICT OF WEST VIRGINIA MULTI DISTRICT LITIGATION CASE 02327?

ARE YOU ONE OF THE 999 (?) WOMEN SHARING THE $112 (?) MILLION DOLLAR QUALIFIED SETTLEMENT FUND CONTROLLED BY BLASINGAME, BURCH, GARRARD AND ASHLEY?

WANT TO KNOW THE ADVANTAGES OF THE ETHICON QUALIFIED SETTLEMENT FUND CREATED SEPTEMBER 8, 2016 FOR YOU?

DON'T GET EXCITED.....

WHILE BBGBA LEGALLY PAYS THEMSELVES IMMEDIATELY THEIR 40% (?) FEE = $44.8 MILLION DOLLARS of the $112 (?) MILLION UNDER SECTION 468B of the INTERNAL REVENUE CODE of 1986 and ARE ELIGIBLE TO BE PAID THEIR PORTION (?) OF THE 5% ($5.6 MILLION), COMMON BENEFITS FUND YOUR ADVANTAGES ARE LISTED BELOW...
4th below "THE PLAINTIFF'S CAN TAKE THEIR TIME" and
Finally below "TIME IS NO LONGER A PRESSING ISSUE."

AND....

JOHNSON & JOHNSON - ETHICON WILL DEDUCT THE $112 MILLION CLAIM EXPENSE FROM THEIR BOOKS IMMEDIATELY and AS IT ELOQUENTLY SAYS BELOW
First "THEY CAN PAY AND WALK".

WANT TO READ ALL BACKGROUND INFO ON THE CUT & PASTE BELOW....CLICK THIS LINK: http://www.kearnsandkearns.com/news/articles/26-why-trial-lawyers-should-use-s468b-settlement.html

Advantages of the §468B Settlement Funds

First,

funding the §468B trust removes the defendant and their counsel from the litigation.  They can pay and walk.  Once a petition is filed by either party in a court and a Trustee for the fund is appointed, the settlement payment to the Trustee satisfies the economic performance test.  The defendant is out of the case.

Second,

the §468B trust removes the defendant from the allocation of the settlement amounts between the various plaintiffs.  The plaintiffs’ attorney does not have to negotiate with the defense counsel about either the allocation of the settlement between the injured parties or the derivative claim for loss of consortium.

Third,

the plaintiffs’ attorney’s fees and other expenses can be paid immediately from the §468B fund.

Fourth, 

the plaintiffs receive the income from the settlement inside the §468B fund. The plaintiffs can take their time, carefully selecting among the options of a lump sum payment, structured settlement annuity and a special needs trust pursuant to 42 USC §1396p(d)(4)(A).

Finally, time is no longer a pressing factor for the lien negotiations, allocations, and probate proceedings. The settlement can be placed in the settlement trust while other matters are dealt with, such as waiting for the final figures for the Medicare claim and Medicaid lien, determining allocations between plaintiffs, and deciding on a method of payment.

No Constructive Receipt

The economic performance test allows the defendant to pay a settlement into a §468B trust and deduct the claim even though the payout to or for the benefit of the plaintiff occurs later.  However, the §468B trust does not constitute constructive receipt to the plaintiff because of the restrictions placed upon the §468B trust. 

CLICK THIS LINK TO SEE ENTIRE AGREEMENT BETWEEN JOHNSON & JOHNSON - ETHICON and BLASINGAME, BURCH, GARRARD & ASHLEY from the COURT WEBSITE:
http://www.wvsd.uscourts.gov/MDL/ethicon/pdfs/PTO_237.pdf

UNITED STATES DISTRICT COURT

FOR THE SOUTHERN DISTRICT OF WEST VIRGINIA

CHARLESTON DIVISION

IN RE: ETHICON, INC. PELVIC REPAIR SYSTEM PRODUCTS LIABILITY LITIGATION

MDL NO. 2327

THIS DOCUMENT RELATES TO ALL CASES

PRETRIAL ORDER # 237

 (Order Re: Qualified Settlement Fund-Ethicon & Blasingame, Burch, Garrard & Ashley P.C.)

Pending is an Unopposed Motion for Approval of Qualified Settlement Fund, filed September 7, 2016.

 Blasingame, Burch, Garrard & Ashley, P.C. (“BBGA”), as counsel for certain plaintiffs in this MDL No. 2327 has moved the Court for entry of an Order to aid in the efficient processing and administration of a Confidential Settlement Agreement (the “Settlement Agreement”) between Defendant Ethicon, Inc. and its parent and subsidiary companies (“Ethicon”) and BBGA to resolve the claims of certain claimants against Ethicon relating to the implant of Ethicon Pelvic Mesh Products (as defined in the Settlement Agreement).  [ECF No. 2733].

 
In particular, BBGA’s Motion seeks an Order

(1) approving an Escrow Agreement (the “Escrow Agreement”), attached as Exhibit A, which forms a settlement escrow account (the “Settlement Escrow”),

 (2) retaining continuing jurisdiction and supervision over the Settlement Escrow, and

 (3) determining that the Settlement Escrow constitutes a “qualified settlement fund” within the meaning of section 468B of the Internal Revenue Code of 1986, as amended (the “Code”) and Treasury Regulation sections 1.468B-1, et. seq.

The Court, having reviewed the Motion and Escrow Agreement, and finding good and sufficient cause, FINDS and ORDERS the following:

1) The Unopposed Motion is GRANTED;

2) The terms of the Escrow Agreement are hereby approved;

3) The Settlement Escrow constitutes a qualified settlement fund within the meaning of section 468B of the Internal Revenue Code of 1986, as amended (“the Code”) and Treasury Regulation sections 1.468B-1, et. seq. The Court further retains continuing jurisdiction and supervision over the Settlement Escrow, in accordance with the terms of the Escrow Agreement; and

4) The appointment of Wells Fargo Bank, National Association to serve as the escrow agent (“Escrow Agent”) pursuant to the Escrow Agreement is approved. The Escrow Agent shall administer the Settlement Escrow in accordance with the terms of the Escrow Agreement.

Further, the funds held by the Escrow Agent in the Settlement Escrow shall be disbursed by the Escrow Agent only pursuant to and in conformance with the terms of the Escrow Agreement and Settlement Agreement, which include provisions for payments into the MDL No. 2327 Fund.

ENTER: September 8, 2016

JOSEPH R. GOODWIN

UNITED STATES DISTRICT JUDGE



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