Updated: June 2024
IN RE: GENERIC PHARMACEUTICALS PRICING ANTITRUST LITIGATION
June 2024 Update: A $10 million "Ice Breaker" Settlement has Been Reached for End Payors, Marking Partial Settlements Across All Tracks
Current Settlement Totals:
Direct Purchasers (Wholesalers and Distributors): $395 million
Filing Deadline was May 13, 2024.
Indirect Resellers (All Dispensers of Drugs including Hospitals and Independent Pharmacies): $6.5 million
End Payors (Consumers, Insurance Companies, Third-Party Payors): $10 million
Total Settlements to Date: $411,537,000
MCAG is actively monitoring the case for updates on additional settlement funds and any upcoming filing deadlines.
Currently, there are no filing deadlines for the Indirect Reseller and End Payor Settlements.
Summary
Drug-makers of all sizes face allegations from the Department of Justice’s Antitrust Division (DOJ), State Attorneys General and private litigants that accuse the defendants of conspiring to cut down on competition and keep prices of over three hundred generic drugs artificially high.
While there are no actionable items at present, MCAG wishes to notify you of the opportunity as the lawsuits may result in significant settlements. Potential class members include Hospitals and businesses that operate as self-funded payors on behalf of their employee benefit plans (i.e. End-Payors).
Allegations
Typically, once a drug patent expires, generic manufacturers are given the green light to copy the drug and sell it as a generic version at a lesser price than its brand name equivalent. The US government has been investigating the generic drug industry since 2016 and claims to hold evidence that generic manufacturers conspired to split up the market and keep prices high. It is alleged the drug-makers kept drug price levels up at an alarming rate, frequently by more than 1,000 percent, over several years.
The amount of alleged overcharges has not been disclosed, but it is estimated that generic-industry sales were around $104 billion in 2017. The Association for Accessible Medicines states that generics account for 90 percent of the prescriptions in the United States.
Recent Activity
Indirect Purchasers-including resellers, consumers and end payors such as benefit plans-continue their litigation against generic drugmakers. A recent $5.5 million settlement with an additional defendant has increased the total fund for the Indirect Reseller Plaintiffs-which includes hospitals and independent pharmacies-to $6.5 million. In June 2024, the end-payors secured their first settlement with defendants, establishing a $10 million fund to address the allegations.
At this time there is no filing deadline and it is expected the claims process will not initiate until additional defendants settle (there are dozens of defendants) and the fund is aggregated.
MCAG continues to monitor for additional settlements and details on the filing process. Please feel free to contact our Account Services team to discuss further.
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