American Home Shares Drop After Ruling

Shares of American Home Products Corp. fell sharply after a ruling by a federal judge that could allow patients in 44 states to collectively sue the company for the cost of monitoring their health after they took the fen-phen diet drug combination. Shares of Madison, N.J.-based American Home fell $3.88 to close at $42.13 on the New York Stock Exchange. The ruling late Thursday by U.S. District Judge Louis Bechtle in Philadelphia conditionally certified a class-action lawsuit filed against the company last year. The decision allows the suit to proceed to trial. American Home marketed one element of the fen-phen combination, which was taken off the market in 1997 at the request of the Food and Drug Administration after some users developed heart valve damage. An estimated 6 million people took the drugs, though AHP contends that the majority used them for less than 30 days. More than 4,000 lawsuits nationwide have been filed against the company. American Home denies any wrongdoing.