Big Pharma Companies Agree to $85 Million Settlement Over Antitrust Litigation
As per the United States Securities and Exchange Commission (SEC), two pharmaceutical subsidiaries in the United States have agreed to pay a combined $85 million to a proposed direct purchaser plaintiffs class in an alleged antitrust lawsuit.
Coming to Terms
The SEC reports that Taro Pharmaceuticals U.S.A., Inc. reached a $67 million settlement in a consolidated antitrust class action with César Castillo, LLC, FWK Holdings, LLC, Rochester Drug Cooperative, Inc., and KPH Healthcare Services, Inc.
Meanwhile, Sun Pharmaceutical Industries Inc. has reached a settlement with the same class. The disclosure was done in another regulatory filing, which noted that the pair of pharma subsidiaries would pay a total of $85 million to settle the litigation.
Court approval is required for Generic Pharmaceuticals Pricing Antitrust Litigation Settlement agreements. If the settlement is authorized, class members will be contacted and given the opportunity to opt-out of the action, object to the settlement, or file a claim for payment under the settlement.
Sun Pharmaceutical Industries Ltd’s previous consolidated financial results include the entire amount of the settlement payments. It said that the settlement agreements were reached without any admission of wrongdoing under the Direct Purchaser Action.
About the Antitrust Allegations Against the Pharma Companies
MDL 2724, In re: Generic Pharmaceuticals Antitrust Pricing Litigation, comprises possible class action lawsuits in which:
- Plaintiffs bring claims against generic drug manufacturers for price fixing in violation of the Sherman Act and/or state antitrust statutes on behalf of multiple putative nationwide classes comprising direct or indirect purchasers of generic pharmaceuticals;
- Between 2012 and the present, the average market price of the generic pharmaceutical is stated to have grown;
- The defendants are believed to have carried out the alleged conspiracy via direct company-to-company interactions and joint activities conducted through trade associations, most notably Generic Pharmaceutical Association meetings; and
- The claims come from the same investigation by the government into anticompetitive behavior in the generic pharma industry.
Currently, there are 18 drug-related claims pending against a number of pharma manufacturers. Recently, the Judicial Panel on Multidistrict Litigation broadened the scope of the MDL to include allegations brought by 40 states via their Attorneys General.
Editor’s Note on Generic Pharmaceuticals Pricing Antitrust Litigation Settlement:
This article is written to inform you of the latest settlement of pharmaceutical companies over antitrust litigations. We also suggest you read the Viatris EpiPen Lawsuit.
Case Name & No.: In re: Generic Pharmaceuticals Pricing Antitrust Litigation, Case No. 2:16-md-02724
Jurisdiction: U.S. District Court for the Eastern District of Pennsylvania
Allegations: Pharmaceutical companies allegedly conducted a price-fixing scheme
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