Memorandum of A.H. Robins Regarding Statute of Limitations and Estimation of Dalkon Shield Claims, 1987 November 2

From November 5 to 11, 1987, Judges Merhige and Shelley held hearings at which the various interested parties presented their estimates of the dollar value of the outstanding claims. Each party had hired experts to examine the data McGovern had compiled, and the work of these experts was presented at the hearing. Thomas Florence conducted the analysis and prepared the estimation for AHR. Other estimates were presented on behalf of the claimants' committee, Aetna, the official committee representing AHR shareholders, and the unsecured creditors. One month later Judge Merhige, having reviewed the estimates which ranged from $1.2 to 7.2 billion, announced that AHR's liability to claimants was $2.475 billion.

On February 1, 1988, American Home Products agreed to acquire AHR, and on March 28, 1988 Robins filed its Sixth Amended and Restated Disclosure Statement Pursuant to Section 1125 of the Bankruptcy Code. This document begins with a summary of the case and a detailed overview of the settlement, followed by the Plan of Reorganization, the Claimants Trust and Other Claimants Trust Agreements, the Claims Resolution Facility, the Merger Agreement, and other documents. Along with letters of endorsement, relevant court orders and notices, and a ballot, the Disclosure Statement was mailed to all eligible claimants to vote on approval of the plan in late April 1988.

This sub-series of 4 boxes and 1 carton (2.9 linear feet) contains the transcript of the hearing, Thomas Florence's estimation report, AHR memoranda on statute of limitations filed with the court at the time of estimation, and a copy of the disclosure statement with accompanying letters of endorsement, court orders and notices.