Settlement Recovery Factors Part 1
Updated: May 14
Indirect vs. Direct Settlements
While MCAG’s settlement recovery service occasionally includes filing claims for clients to direct purchaser settlements, indirect purchaser settlements are most often the type that benefit our clients.
Direct settlements are usually constructed for a limited number of organizations (dozens to hundreds), while indirect settlements can apply to millions of organizations.
Direct purchaser pharmaceutical settlements are the most prevalent example because the vast majority of drugs purchased in the U.S. are distributed through companies like Amerisourcebergen, McKesson and Cardinal Health. As a result, most companies and their benefit plans purchase drugs through these distributors as opposed to working directly with a number of different pharmaceutical companies like Pfizer, Roche, Novartis, Merck, AbbVie, Sanofi, etc.
This construct means that the direct purchaser settlements are raised to benefit the distributors like Amerisourcebergen, and the indirect settlements are raised to benefit the entities who purchase the drugs through these distributors.
The same can be said for product settlements that cover computers, monitors, or TVs. Similar to the pharmaceutical settlements, most entities purchase these products through a distributor such as CDW or Best Buy as opposed to purchasing directly from the manufacturer (Toshiba, LG, Samsung, etc.).
At MCAG, we're proud to lead the revenue recovery consulting industry in providing clients with clear and concise information. In our role as advisors, we understand your need for the straightest of straight talk and that's all we do when guiding our clients through the complicated world of class action settlements. If you would like to learn more about indirect versus direct settlements or you have questions about specific settlement, please give us a call at 1-800-355-0466 or drop us an email at firstname.lastname@example.org and one of our settlement research managers will be happy to assist you.