Consumers and Third-Party Payers to Benefit from $275 Million Settlement in Generic Drug Class Action Suit
In a significant development, the plaintiffs in a class action lawsuit concerning generic prescription drugs have announced a settlement agreement totaling $275 million. This resolution is expected to provide financial relief to consumers as well as third-party payers who have incurred expenses related to these medications. The announcement was made by the legal firm Fine, Kaplan, and Black, R.P.C. on March 10, 2025, in Philadelphia.
The class action, officially titled "In re Generic Pharmaceuticals Antitrust Litigation," seeks to address claims against generic drug manufacturers, including Sandoz Inc. and Fougera Pharmaceuticals Inc. The lawsuit alleges that these companies, along with other unnamed defendants, violated federal and state antitrust laws, consumer protection laws, and common law, resulting in overcharges for certain generic medications, referred to as 'designated generic drugs.' Such practices allegedly forced consumers and third-party payors—like insurance companies and employers managing self-funded prescription drug plans—to pay more than they should have.
According to the terms of the settlement, if you purchased, paid for, or reimbursed any of these designated drugs from May 1, 2009, to December 31, 2019, in the United States (excluding Indiana and Ohio), you may be eligible to receive compensation from the settlement fund. The intent is to distribute funds fairly to those who have been affected.
The allocated $275 million is subject to some reductions based on legal fees, administrative costs (not exceeding $750,000), and other expenditures, including potential compensation for the class representatives. Specifically, attorney fees can amount to one-third of the settlement fund, along with interest accrued. After these deductions, the remaining funds will be used to compensate eligible members of the class.
Sandoz has agreed to cooperate with the plaintiffs in any ongoing actions against the non-settling defendants, providing relevant information as necessary. This includes the ongoing litigation against the non-settling manufacturers, underscoring that Sandoz asserts it bears no liability to the final payors, maintaining its position throughout the proceedings.
For those looking to claim compensation, payments will only be issued after the court formally approves the settlement agreement. Details on the distribution plan will also require court endorsement before implementation. If you are a member of the settlement class and wish to stay updated on the claims infrastructure or need to file a claim, a registration is essential via the designated website.
Interested parties wanting to opt out or contest the settlement must act promptly, as any objections must be submitted before May 9, 2025. The court is set to hold a fairness hearing on July 23, 2025, where they will decide on the approval of the agreement, distribution plan, and any fee applications. Attending this hearing will require a notification of intent filed with the court, and participants may choose to engage legal counsel at their discretion.
As the generic drug market continues to evolve, these legal proceedings highlight the complex relationships between consumers, payors, and pharmaceutical companies. This landmark settlement not only aims to remedy past grievances but also calls for a transparent reassessment of pricing strategies within the generic drug sector.
For additional information regarding the settlement, claims process, or to check if you qualify, please visit www.GenericDrugsEndPayerSettlement.com or reach out by phone at 1-877-316-0171 for assistance in Spanish as well.
The class action, officially titled "In re Generic Pharmaceuticals Antitrust Litigation," seeks to address claims against generic drug manufacturers, including Sandoz Inc. and Fougera Pharmaceuticals Inc. The lawsuit alleges that these companies, along with other unnamed defendants, violated federal and state antitrust laws, consumer protection laws, and common law, resulting in overcharges for certain generic medications, referred to as 'designated generic drugs.' Such practices allegedly forced consumers and third-party payors—like insurance companies and employers managing self-funded prescription drug plans—to pay more than they should have.
According to the terms of the settlement, if you purchased, paid for, or reimbursed any of these designated drugs from May 1, 2009, to December 31, 2019, in the United States (excluding Indiana and Ohio), you may be eligible to receive compensation from the settlement fund. The intent is to distribute funds fairly to those who have been affected.
The allocated $275 million is subject to some reductions based on legal fees, administrative costs (not exceeding $750,000), and other expenditures, including potential compensation for the class representatives. Specifically, attorney fees can amount to one-third of the settlement fund, along with interest accrued. After these deductions, the remaining funds will be used to compensate eligible members of the class.
Sandoz has agreed to cooperate with the plaintiffs in any ongoing actions against the non-settling defendants, providing relevant information as necessary. This includes the ongoing litigation against the non-settling manufacturers, underscoring that Sandoz asserts it bears no liability to the final payors, maintaining its position throughout the proceedings.
For those looking to claim compensation, payments will only be issued after the court formally approves the settlement agreement. Details on the distribution plan will also require court endorsement before implementation. If you are a member of the settlement class and wish to stay updated on the claims infrastructure or need to file a claim, a registration is essential via the designated website.
Interested parties wanting to opt out or contest the settlement must act promptly, as any objections must be submitted before May 9, 2025. The court is set to hold a fairness hearing on July 23, 2025, where they will decide on the approval of the agreement, distribution plan, and any fee applications. Attending this hearing will require a notification of intent filed with the court, and participants may choose to engage legal counsel at their discretion.
As the generic drug market continues to evolve, these legal proceedings highlight the complex relationships between consumers, payors, and pharmaceutical companies. This landmark settlement not only aims to remedy past grievances but also calls for a transparent reassessment of pricing strategies within the generic drug sector.
For additional information regarding the settlement, claims process, or to check if you qualify, please visit www.GenericDrugsEndPayerSettlement.com or reach out by phone at 1-877-316-0171 for assistance in Spanish as well.
Topics Health）
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