Organizations Helped By Lawsuit Leftovers

Albuquerque Journal  |  February 17, 2009

Feb. 16, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- Leftover money is not unusual in class action lawsuits, and in the settlement of one class action the entire amount was a cy pres distribution, according to attorneys involved in national litigation over the flavor enhancer MSG.

Last May, a cypres distribution meant $405,000 went to the Roadrunner Food Bank.

Melody Wattenbarger, executive director of Roadrunner Food Bank, said the money it got from the MSG settlement was the state's share based on its population and its poverty. It was part of a $25 million national settlement.

Roadrunner elected to spend it over two years, she said, on a newly launched mobile food pantry, rising fuel costs and buying produce.

"It was great windfall for us (and) has turned out to be a wonderful thing (during) these very, very difficult times," she said.

Last month, Attorney General Gary King handed over a $377,000 check to the New Mexico Primary Care Association from the settlement of two lawsuits against Express Scripts (NASDAQ:ESRX) and CVS (NYSE:CVS) Caremark for consumer law violations. NMPCA in turn is purchasing and supplying thousands of chem strips, used to monitor blood sugar levels in diabetic patients, to 15 health centers around the state.

Diabetics "will see some relief from the expense of purchasing their monitoring supplies," executive director David Roddy said.

Newstex ID: KRTB-0010-31853394