In a protracted legal saga spanning half a decade, a Boston federal judge, Douglas Woodlock, has finally rendered a decision on the distribution of approximately $20 million in fees stemming from a $784.6 million settlement between Pfizer and the U.S. Department of Justice. The ruling determines the entitlements of three law firms involved in the whistleblower case that led to the 2016 settlement.
Following a bench trial and a prolonged period of uncertainty, Woodlock declared that the two law firms, Vezina & Gattuso and Boone & Stone, dismissed by the whistleblower, are entitled to a significant portion of the funds reserved for legal fees. Both firms were fired by Dr. William St. John LaCorte, the whistleblower at the center of the Pfizer case.
The dispute saw Sakla Law Firm, representing Dr. LaCorte, argue that Vezina & Gattuso and Boone & Stone were owed minimal compensation. However, Woodlock recognized the meaningful legal contributions made by the dismissed firms, turning a case initially declined by the Justice Department into a successful one that garnered government support and ultimately settled.
In a detailed 79-page opinion, Woodlock allocated 55% of the contingency fees to Sakla Law Firm, 30% to Vezina & Gattuso, and 15% to Boone & Stone. The judge acknowledged the significant role played by all three firms in transforming the case into a government-backed success.
The extended wait for a ruling led all three law firms to petition the 1st U.S. Circuit Court of Appeals, which, while not compelling Woodlock to rule, expressed its expectation of a “prompt” decision on November 27.
The legal battle originated from the 2016 settlement between Pfizer, which had acquired Wyeth in 2009, and the Justice Department. The settlement addressed allegations that Wyeth reported false and fraudulent prices for antacid drugs Protonix Oral and Protonix I.V. The False Claims Act allowed whistleblower LaCorte to sue on the government’s behalf, leading to the recovery of taxpayer funds and subsequent legal fees.
Woodlock’s ruling brings an end to the prolonged dispute, providing clarity on the distribution of fees among the involved law firms, marking a significant chapter in the aftermath of the Pfizer settlement.
