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IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA

PRETRIAL ORDER NO. 1415

The court has conducted extensive proceedings to determine whether the proposed class action settlement set forth in the Nationwide Class Action Settlement Agreement with American Home Products Corporation and Amendments thereto (the "Settlement Agreement") filed with the court in the above-captioned action merits final approval, and if the plaintiff class previously certified by the court in Pretrial Order No. 997 should be confirmed for purposes of effectuating the Settlement. For the reasons set forth in the attached Pretrial Memorandum and upon consideration of all papers filed, all evidence and testimony presented and the presentations and arguments on pertinent issues in the Fairness Hearing Proceedings conducted herein, the court has determined that the proposed class action settlement should be approved pursuant to Federal Rule of Civil Procedure 23(e) as fair, reasonable and adequate.

Accordingly, IT IS ORDERED that:

1. The court’s findings of fact and conclusions of law are incorporated herein as though fully set forth in this Final Order and Judgment. The definitions and terms set forth in the Settlement Agreement are incorporated herein as though fully set forth in this Final Order and Judgment.

2. The court has jurisdiction over the subject matter of this action with respect to all claims, and has jurisdiction over all parties to this action, including all members of the settlement class and subclasses as defined below.

3. The court hereby confirms that this action is properly certified as a class action for settlement purposes, in compliance with the applicable Rule 23 criteria; and that the settlement merits final approval under the criteria articulated in Girsh v. Jepson, 521 F.2d 153 (3d Cir. 1975) and In re Prudential Ins. Co. of Am. Sales Practices Litig., 148 F.3d 283 (3d Cir. 1998), cert denied sub nom., Krell v Prudential Ins. Co. of Am. Litig, 525 U.S. 1114 (1999). The settlement class and its subclasses are defined as:

   All persons in the United States, its possessions and territories who ingested Pondimin® and/or Redux ("Diet Drug Recipients"), or their estates, administrators or other legal representatives, heirs or beneficiaries ("Representative Claimants"), and any other persons asserting the right to sue AHP or any Released Party independently or derivatively by reason of their personal relationship with a Diet Drug Recipient, including without limitation, spouses, parents, children, dependents, other relatives or "significant others" (Derivative Claimants"). The Settlement Class does not include any individuals whose claims against AHP and/or the AHP Released Parties, arising from the use of Diet Drugs, have been resolved by judgment on the merits or by release (other than releases provided pursuant to this Settlement).

   "Subclass 1(a)" - All Diet Drug Recipients in the Settlement Class (1) who ingested Pondimin® and/or Redux for 60 days or less, and (2) who have not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and September 30, 1999, and all Representative and Derivative Claimants in the Settlement Class whose claims are based on their personal or legal relationship with a Diet Drug Recipient (1) who ingested Pondimin® and/or Redux for 60 days or less, and (2) who has not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and September 30, 1999.

   "Subclass 1(b)" - All Diet Drug Recipients in the Settlement Class (1) who ingested Pondimin® and/or Redux for 61 or more days, and (2) who have not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and September 30, 1999, and all Representative and Derivative Claimants in the Settlement Class whose claims are based on a personal or legal relationship with a Diet Drug Recipient (1) who ingested Pondimin® and/or Redux for 61 or more days, and (2) who has not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and September 30, 1999.

   "Subclass 2(a)" - All Diet Drug Recipients in the Settlement Class (1) who ingested Pondimin® and/or Redux for 60 days or less, and (2) who have been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram which was performed between the commencement of Diet Drug use and September 30, 1999, and all Representative and Derivative Claimants in the Settlement Class whose claims are based on a personal or legal relationship with a Diet Drug Recipient (1) who ingested Pondimin® and/or Redux for 60 days or less, and (2) who has been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram which was performed between the commencement of Diet Drug use and September 30, 1999.

   "Subclass 2(b)" - All Diet Drug Recipients in the Settlement Class (1) who ingested Pondimin^® and/or Redux for 61 or more days, and (2) who have been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram which was performed between the commencement of Diet Drug use and September 30, 1999, and all Representative and Derivative Claimants in the Settlement Class whose claims are based on a personal or legal relationship with a Diet Drug Recipient (1) who ingested Pondimin® and/or Redux for 61 or more days, and (2) who has been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and September 30, 1999.

   "Subclass 3" (which may include persons also included in Subclasses 1(a) and 1(b)) - All Diet Drug Recipients in the Settlement Class who have been diagnosed by a Qualified Physician as having Mild Mitral Regurgitation by an Echocardiogram performed between the commencement of Diet Drug use and the end of the Screening, but who have not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and the end of the Screening Period, and all Representative and Derivative Claimants in the Settlement Class whose claims are based on a personal or legal relationship with a Diet Drug Recipient who has been diagnosed by a Qualified Physician as having Mild Mitral Regurgitation by an Echocardiogram performed between the commencement of Diet Drug use and the end of the Screening Period, but who has not been diagnosed by a Qualified Physician as FDA Positive by an Echocardiogram performed between the commencement of Diet Drug use and the end of the Screening Period.

4. The court has determined that the Class Representative plaintiffs named in the operative Third Amended Complaint (Brenda Chambers, Donna Jarrell, Vivian Naugle, Quentin Layer, Joan S. Layer and Isabel Connor), have standing to represent, and adequately represent, the Class and their respective Subclasses, and they are confirmed as representatives of the Settlement Class and of each of their respective Subclasses. Class and Subclass counsel are likewise confirmed as follows:

   Class Counsel:

   John J. Cummings
   Cummings, Cummings & Dudenhefer

   Arnold Levin
   Levin, Fishbein, Sedran & Berman

   Michael D. Fishbein
   Levin, Fishbein, Sedran & Berman

   Stanley Chesley
   Waite, Schneider, Bayless & Chesley

   Sol H. Weiss
   Anapol, Schwartz, Weiss, Cohan, Feldman & Smalley, P.C.

   Charles R. Parker
   Hill & Parker

   Gene Locks
   Greitzer & Locks

   Subclass Representatives and Counsel:

   • Subclass 1(a)

     Subclass Representative: Brenda Chambers
     Subclass Counsel: Diane M. Nast, Roda & Nast, P.C.

   • Subclass 1(b)

     Subclass Representative: Donna Jarrell
     Subclass Counsel: Richard S. Lewis, Cohen, Milstein, Hausfeld & Toll, P.L.L.C.

   • Subclass 2(a)

     Subclass Representative: Vivian Naugle
     Subclass Counsel: Mark W. Tanner, Feldman, Shepherd & Wohlgelertner

   • Subclass 2(b)

     Subclass Representative: Quentin Layer & Joan S. Layer
     Subclass Counsel: R. Eric Kennedy, Weisman, Goldberg & Weisman Co., L.P.A.

   • Subclass 3

     Subclass Representative: Isabel Connor
     Subclass Counsel: Richard Wayne, Strauss & Troy

5. The court hereby approves the settlement as set forth in the Nationwide Class Action Settlement Agreement with American Home Products Corporation (including the First through Fourth Amendments thereto) in its entirety and finds and determines that said settlement is, in all respects, fair, reasonable and adequate to the Class, within the authority of the parties, and non-collusive.

6. The court hereby dismisses, with prejudice and with each party to bear their own costs, the Third Amended Complaint in this action, as well as all other claims or actions asserting Settled Claims against American Home products Corporation ("AHP") pending before the court. These dismissals are to be vacated, and the complaints reinstated, in the event that this Order and Judgment is reversed or vacated, in whole or material part, on appeal.

7. The court hereby bars and enjoins all class members who have not, or do not, timely and properly exercise an Initial, Intermediate, Back-End or Financial Insecurity Opt-Out right from asserting, and/or continuing to prosecute against AHP or any other Released Party any and all Settled Claims which the class member had, has or may have in the future in any federal, state or territorial court.

8. The court hereby bars and enjoins the commencement and/or prosecution of any claim for contribution and/or non-contractual indemnity, pursuant to Section VII.C of the Settlement Agreement and subject to the provisions of Section VII.C.2 of the Settlement Agreement, in any federal, state or territorial court against AHP or any other Released Party by any Non-Settling Defendant arising from or relating to any Settled Claim asserted by any class member.

9. The court hereby bars and enjoins the commencement and/or prosecution of any claim or action against AHP in any federal, state or territorial court based on rights of subrogation by virtue of a payment or payments made to or for the benefit of a class member arising out of or in relation to any Settled Claims, except to the extent that it would be impermissible to bar such claims under provisions of applicable law.

10. This Order and Judgment is binding upon AHP and upon all members of the Settlement Class and Subclasses, as defined herein above, who have not timely effected exclusion from the class under the procedures set forth in the Class Notice. A final list of timely and proper exclusions shall be filed herein by the Interim Claims Administrators as soon as practicable. This Final Order and Judgment is without prejudice to the prospective exclusion rights of the class members as set forth in the Settlement Agreement.

11. Without affecting the finality of this Final Order and Judgment in any way, the court hereby retains continuing and exclusive jurisdiction over this action and each of the Parties, including AHP and the class members, to administer, supervise, interpret and enforce the Settlement in accordance with its terms; to supervise the operation of the Settlement Trust; to determine applications for and make reasonable awards of attorneys’ fees and reimbursement of costs to Class and Subclass Counsel, the Plaintiffs’ Management Committee, and others for work contributing to the common benefit of the class; and to enter such other and further orders as are needed to effectuate the terms of the Settlement.

12. There is no just reason for delay of the entry of this Final Order and Judgment as set forth herein, and it is therefore directed that judgment be entered.

SO ORDERED, this 28th day of August, 2000.

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