Diageo to pay £45m to Thalidomide Trust

Diageo has agreed to pay a further £45 million (US$57m) to the UK’s Thalidomide Trust, “reiterating its commitment” to support the on-going care of victims.

Johnnie Walker maker Diageo will pay an additional £45m to a trust that supports UK victims of thalidomide

The Johnnie Walker maker’s agreement with the trustees of the Thalidomide Trust and the Thalidomide Trust’s National Advisory Council will see it make a one-off payment of £27m (US$34m).

The total £45m funds will be used to help cover “capital costs associated with the changing health needs” of trust beneficiaries.

Thalidomide drugs were distributed between 1958 and 1961 by Distillers Biochemicals, which eventually became part of Diageo in 1997, to pregnant women experiencing morning sickness.

However, the drug caused thousands of babies to suffer severe birth defects such as malformation of the limbs, blindness and deafness.

“We have a long track record of working with, and supporting, the Thalidomide Trust in their efforts to ensure that long-term care and financial support for people injured by thalidomide is secure,” said Franz Humer, outgoing chairman of Diageo.

“This has always been important for Diageo and we remain committed to our ongoing relationship with the Thalidomide Trust.”

Established in 1973, the Thalidomide Trust currently supports 465 individuals aged between 51 and 57 who have two to four damaged limbs and loss of hearing or sight in some cases.

In 2014, the Supreme Court of Victoria approved Diageo’s AU$89m settlement with thalidomide victims living in Australia and New Zealand.