Diageo reaches settlement with thalidomide victims

Drinks giant Diageo has been praised for its compassion after agreeing a £49 million settlement with more than 100 thalidomide victims in Australia and New Zealand.

Lawyer Peter Gordon told the Victoria state Supreme Court the deal, subject to court approval, brought to an end a long battle for compensation and praised the global firm’s constructive approach.

The drug was given to pregnant women in the 1950s and 1960s as a treatment for morning sickness, but was pulled from the market in 1961 after it was linked to birth defects.

Diageo was not itself responsible for the distribution or sale of the drug.

However the Distillers Company, which distributed it in Australia, was bought by Guinness in 1986, ahead of the creation of Diageo 11 years later.