CLAIMANTS' ADVISORY COMMITTEE E-NEWSLETTER

Volume 6, No. 7, July 6, 2009

Contact the CAC at: info@tortcomm.org or

by phone at: (419) 394-0717

 

Sybil Niden Goldrich

Ernest Hornsby, Esq

Dianna Pendleton-Dominguez, Esq.

 

 

This is the 61st e-newsletter (Vol. 6, No. 7) from the Claimants' Advisory Committee (CAC) in the Dow Corning bankruptcy Settlement Plan. You were sent a copy of the newsletter because our records show that you requested to be on the mailing list. If you wish to unsubscribe, click here or to reply to this newsletter, send an email to: info@tortcomm.org. Please do not hit "Reply" to this email address. Please use the email address: info@tortcomm.org.

 

Requests for copies of claim forms or inquiries about the status of a claim should be directed to the Settlement Facility at info@sfdct.com or 866-874-6099. The Claimants' Advisory Committee does not have access to individual claimant files to answer these kinds of questions.

 

 

1.     DOW CORNING FILES NOTICES OF APPEAL AND MOTION TO STAY IMPLEMENTATION OF DISABILITY "A" AND TISSUE EXPANDER ORDERS

 

On June 19, 2009, Dow Corning filed Notices of Appeal for the two Court Orders that were entered on June 10, 2009 with regard to the Disability A (and/or) dispute and the ruling that tissue expanders are breast implants. You can read a copy of both Notices on the CAC website at www.tortcomm.org under the heading "Appeals." In addition, Dow Corning filed a Motion to Stay implementation of both orders claiming that implementation of the orders would "significantly impact" Dow Corning and the Trust and would cause irreparable harm because "every dollar paid by the Trust to claimants that may ultimately prove ineligible, should Dow Corning prevail on appeal, is a dollar out of Dow Corning's pocket." In short, Dow Corning has asked the court to prevent any claimants who qualify for Level A disability based solely on vocation or based solely on self-care, as well as claimants with Dow Corning tissue expanders, from qualifying for payment until the Court of Appeals for the Sixth Circuit rules on the appeals.

 

The CAC is opposed to Dow Corning's motion for a stay and we are preparing a response with the court that is due by July 7th. We will also file responses opposing Dow Corning's positions on appeal and seek to affirm (approve) the district court's rulings on both Disability A and tissue expanders. A copy of all documents related to the appeal and motion to stay will be available within the next week on the CAC website under the new heading, "Appeals to 6th Circuit." Please continue to check back to the CAC website for further updates.

 

2.     STATUS OF CLAIMS PROCESSING FOR FIRST REVIEW AND RE-REVIEW (RAI'S) in CLASS 5 (DOW CORNING BREAST IMPLANT CLAIMANTS IN THE U.S.)

 

The Claims Administrator recently reported to the parties and the court that as of June 15th, the SF-DCT has the following backlogs in claims processing:

 

Disease Option 1 - 230 claims pending first review in Class 5 and 140 claims pending re-review.

 

Disease Option 2 - 265 claims pending first review in Class 5 (80 SLE, 32 SS, 11 PM/DM, 142 GCTS) and 188 claims pending re-review.

 

The SF-DCT has concentrated on bringing the re-review backlog more current in the past several months which may have caused a larger than normal backlog in processing Disease Option 1 claims. The CAC supports this effort and believes that it is crucial that re-reviews have no more than a 30-60 day delay so that claimants can have adequate time to fix problems in their claims before their cure deadline expires.

 

3.      URGENT REMINDER FOR FINAL CURE DEADLINE FOR CERTAIN ACTD CLAIMANTS

 

The final cure deadline for certain deficient ACTD claims is JULY 9, 2009. This cure deadline applies only to certain claimants who previously filed a claim for Atypical Connective Tissue Disease (ACTD) and received a deficiency notice about that claim from the Settlement Facility - Dow Corning Trust (SF-DCT). This cure deadline notice does not apply to you if the SF-DCT notified you that you have a longer or different cure deadline date.

 

No further extensions of cure deadlines for ACTD will be allowed. We strongly suggest that claimants and attorneys download and review a copy of the Disease Guidelines for ACTD that are posted on the CAC and SF-DCT websites and to contact a nurse reviewer at the Settlement Facility to schedule a time to go over the deficiencies in your claim and what is needed to correct them. Don't wait until the last minute to contact the SF-DCT or to send in your documents.

 

The ACTD Guidelines document is at:

 

http://www.tortcomm.org/downloads/actdfinalposted_to_website_1-12-09_2.pdf

 

If you have any question about what your cure deadline is, contact the SF-DCT at 1-866-874-6099 or at info@sfdct.com.

 

 

4.     UPDATE REGARDING PREMIUM PAYMENTS

 

The Independent Assessor - who is charged with making recommendations regarding the adequacy of assets to make Premium Payments - issued an update for the fourth quarter of 2008. It states:

 

The Independent Assessor of the Settlement Facility - Dow Corning Trust (SF-DCT) reviewed the liabilities and assets of the facility as of the end of the fourth quarter of 2008 and estimated that the facility would remain solvent under each of a range of liability and asset assumptions tested. Until patterns of filing and claims acceptance become more certain, use of the current estimates for the purpose of determining whether premium payments can be made is premature.

 

The CAC is continuing our efforts with the Finance Committee to have them recommend payment of Premium Payments to the District Court. The Settlement Plan requires that the Finance Committee (not the CAC) make this recommendation. We do not have any further information on when Premium Payments will be made but we will continue to post any updates to our website.

 

 

5.     KEEP YOUR ADDRESS AND CONTACT INFORMATION UPDATED AT THE SETTLEMENT FACILITY

 

It is extremely important that all claimants and counsel continue to keep their contact information, particularly their most current address, updated at the Settlement Facility. The Trust continues to experience a high volume of returned mail and stale checks because claimants with approved claims and payments cannot be located. As of May 31, 2009, this accounted for 928 payments totalliing $3.76 million.

 

 

6.     SETTLEMENT FACILITY PAYMENTS TO CLAIMANTS - $1.103 BILLION

 

As of May 31, 2009, the Settlement Facility - Dow Corning Trust reports that it has issued checks to claimants in the Dow Corning Settlement Fund totalling approximately $1.103 billion dollars.

 

Classes 5, 6.1 and 6.2 - Dow Corning Breast Implant Claimants

 

As a result of the increased focus on bringing re-reviews more current, the SF-DCT issued over $12.2 million in payments to Claimants in Classes 5 and 6 during the month of May, of which $10.3 million consisted of disease payments.

 

To date, checks totalling approximately $431.493 million have been issued to 22,264 approved rupture claimants.

 

Checks totalling $139.3 million have been issued to 28,739 claimants for an approved Explant claim, and another $348,000 has been paid to 116 claimants in Class 6.2 who elected the Increased Explant Payment. Approximately $2.9 million has been paid to 584 claimants in the Explant Assistance Program for explantation.

 

Approximately 23,992 approved disease claimants have been issued checks totalling approximately $454.769 million. In addition, the SF-DCT has issued 32,536 checks totalling $56.172 million for Expedited Release.

 

The approval rate for Proof of Manufacturer (POM) for claimants who passed the pre-screening process (i.e., eligibility to participate in the settlement) remains at 90% for Dow Corning breast implant claims in Class 5, 78% for Class 6.1, and 43% for Class 6.2.

 

A breakdown of the payments made from June 1, 2004 through May 31, 2009 by class and benefit type is listed below:

 

 

Cumulative Payments to All Classes (including NOI claims)

June 1, 2004 - May 31, 2009

 

 

 

 

Class

 

 

 

Rupture

 

 

 

Explant

 

 

Increased Explant

 

Explant Assistance Program

 

 

Expedited Release

 

 

 

Disease

Medical Conditions in Class 9/10

Other

Products Premium Payment

 

 

 

Total

Class 5

 

$417,334,856.66

 

$135,186,892.09

 

n/a

 

$2,879,301.10

 

$30,904,221.89

 

$449,872,311.53

 

n/a

 

n/a

 

$1,036,177,575.27

Class 6.1

 

$ 13,029,750.51

 

$ 4,026,362.44

 

n/a

 

$ 9,000.00

 

$ 2,524,968.51

 

$ 4,697,618.48

 

n/a

 

n/a

 

$ 24,187,699.94

Class 6.2

 

$ 997,500.00

 

$ 91,000.00

 

$348,000

 

$ 0.00

 

$ 47,600.00

 

$ 299,250.00

 

n/a

 

n/a

 

$ 1,783,350.00

Class 6.2: 2

 

n/a

 

n/a

 

n/a

 

n/a

 

$ 85,700.00

 

n/a

 

n/a

 

n/a

 

$ 85,700.00

Class 6.2: 3

 

n/a

 

n/a

 

n/a

 

n/a

 

$ 129,600.00

 

n/a

 

n/a

 

n/a

 

$ 129,600.00

Class 7

 

n/a

 

n/a

 

n/a

 

n/a

 

$20,583,129.01

 

n/a

 

n/a

 

n/a

 

$ 20,583,129.01

Class 9

 

$ 125,000.00

 

n/a

 

n/a

 

n/a

 

$ 1,746,145.10

 

n/a

 

$2,845,000

 

$14,057,500

 

$ 18,773,645.10

Class 10.1/2

 

$ 6,000.00

 

n/a

 

n/a

 

n/a

 

$ 151,050.00

 

n/a

 

$ 216,625

 

$ 1,027,125

 

$ 1,400,800.00

 

Total

 

$431,493,099.17

 

$139,304,254.53

 

$348,000

 

$2,888,301.10

 

$56,172,414.51

 

$454,769,180.01

 

$3,061,625

 

$15,084,625

 

$1,103,121,499.32

 

 

 

Class 7 - Silicone Gel Material Claims

 

Disease Cash-Out Offers: A total of 7,342 claimants in Class 7 have been sent the $3,000 Disease Cash-Out offer. Of this number, 77% have cashed the check and accepted the payment, 16% have returned the check and asked for a full disease review, and 7% are pending (they have not cashed the check or returned it to the SF-DCT). Most of the claimants who rejected the offer have applied for a Disease Option 1 claim (854) and, of this number, 658 reviews have been completed. No claims in Disease Option 2 for Class 7 have been reviewed. The Settlement Facility has begun issuing Notification of Status letters; however, no Class 7 disease claims can be paid until all disease claims have been reviewed and the one-year time deadline to cure deficiencies has expired.

 

The total payout of cashed checks from the capped $57.5 million NPV fund through March 31, 2009 is $20,583,129.01.

 

 

Class 7 - Silicone Gel Material Claims

# Class 7 Forms Filed

54,719

# of claims that are NOT eligible based on POM review

8,446

# of claims that failed marshalling

29,068

Foreign Gel Claims Approved & Paid $600

619

Expedited Release Claims Approved & Paid $600

6,940

# of Disease Cash-Out Offers of $3,000

7,342

TOTAL PAYMENTS OR CASH-OUT OFFERS

14,901

TOTAL # of Claims Paid (excluding those who rejected the Cash-Out Offer)

14,901

TOTAL AMT PAID as of 4-30-09

$20,583,129.01

 

 

Notice of Intent (NOI) Claims Processing

 

The Settlement Facility has paid a total of $24,806,118 in Explant and Rupture payments to Notice of Intent (NOI) claimants. The SF-DCT is current in processing Proof of Manufacturer, Explant and Rupture claims for NOI claimants.

 

 

Type of Claim

Total Claims Paid

Amount

Rupture

996

$19,397,100.00

Medically contraindicated Rupture

 

1

 

$ 1,750.00

Explant

1,077

$ 5,237,067.70

Explant Assistance Program

35

$ 170,200.00

Total

2,109

$24,806,118.00

 

 

7. DEADINE REMINDERS

 

Please mark your calendar with the following claim submission deadlines. Note that different deadlines apply to Notice of Intent (NOI) Claimants and Late Claimants. Please note that most of these deadlines mean that your claim forms and materials must be received by the SF-DCT by the posted deadline. Please mail all forms early enough so that they are received by the deadline listed below. If your claim form is not received by the deadline listed below, you will not be permitted to file a claim later.

 

Deadline Date

Type of Deadline

July 9, 2009

Cure Deadline for certain claimants who previously filed a claim for Atypical Connective Tissue Disease (ACTD) (consult the SF-DCT about your specific cure deadline)

June 2, 2014

Explant Claims submission deadline for timely filed claimants in Classes 5, 6.1 and 6.2 (NOTE: this deadline does NOT apply to NOI claimants or Late Claimants)

June 3, 2019

Disease or Expedited Release Claim submission deadline for all claims in Classes 5, 6.1 and 6.2 (this deadline does NOT apply to Late Claimants)

 

_______________________________________________________________________

If you would like to read prior CAC e-newsletters, they are available on the CAC website by clicking on "Electronic Newsletter." We urge you to visit the CAC website (www.tortcomm.org) on a regular basis to download or view relevant documents and read updates and new information. To contact the CAC, send an email to: info@tortcomm.org or send a letter to the Post Office Box address for the CAC at:

 

Claimants' Advisory Committee

P.O. Box 665

St. Marys, Ohio 45885

 

Phone Number: (419) 394-0717

Fax Number: (419) 394-1748

Email: info@tortcomm.org

 

NOTICE: This document is copyrighted. You are not authorized to post it on any website without express, prior written permission of the Claimants' Advisory Committee.