Class Action Settlements Announced for Consumers and Payers of Prescription Generic Drugs
In a significant development for consumers and third-party payers in the United States, Fine, Kaplan and Black, R.P.C. have announced class action settlements for those affected by high costs related to certain prescription generic drugs. If you or your organization paid for or reimbursed these medications between May 1, 2009, and December 31, 2019, you may be eligible for compensation from settlements totaling $58 million. This legal notice is issued following a court's authorization, emphasizing the serious nature of the allegations made in this case.
The class action lawsuit, known as In re Generic Pharmaceuticals Antitrust Litigation (No. 16-MD-2724), is currently pending in the United States District Court for the Eastern District of Pennsylvania. Allegations in the case claim that several generic drug manufacturers, including Heritage Pharmaceuticals Inc. and Apotex Corp., violated federal and state antitrust laws as well as consumer protection statutes. This resulted in consumers and third-party payers (such as insurance companies and employers with self-funded prescription plans) paying inflated prices for certain defined generic drugs, referred to as 'Named Generic Drugs.' Despite the serious nature of the allegations, the settling defendants have denied any wrongdoing.
The categories of individuals and entities that may qualify for these settlements are quite distinct. Two specific settlement classes have been preliminarily approved: firstly, the EPP Heritage Settlement Class, which encompasses Third Party Payers (TPPs), and secondly, the EPP Apotex Settlement Class, which includes both TPPs and possibly affected consumers. To qualify, TPPs must have indirectly purchased or reimbursed costs for one or more Named Generic Drugs for personal use (and not for resale) during the stipulated period. Importantly, entities listed under certain exclusions will not participate in these settlements.
The settlement agreements detail that Heritage Pharmaceuticals and associated entities have committed to pay $10 million in total for the Heritage Settlement, while Apotex will pay a substantial sum of $48 million under the corresponding settlement class. After covering costs related to the settlement notification, administration, and potentially attorneys' fees, allocated funds will benefit eligible TPP Settlement Class Members. Notably, the anticipated process of claiming settlements will rely heavily on the approval of a proposed Plan of Allocation by the court, which outlines how the available funds will be distributed.
As these legal proceedings progress, interested parties will learn more about how they can claim their share of the settlement fund after the Court’s approval. Registration on the designated EPP Settlement Website is urged for updates on claim forms and related news.
Settlement Class Members face some important choices ahead of them. By doing nothing, members automatically remain in the settlement class, accepting the court's ruling as final. However, those who wish to maintain their right to pursue legal claims independently against the settling defendants must proactively exclude themselves from the settlement classes. This exclusion process, along with details regarding objections to the settlements or the proposed attorney fees, must be initiated by a deadline outlined on the settlement website. A Fairness Hearing has also been scheduled, inviting interested parties to present their positions concerning the settlements.
For any inquiries or further information, affected individuals can visit the dedicated website at www.GenericDrugsEndPayerSettlement.com or contact the hotline at 1-877-316-0171. As this situation develops, it remains crucial for all potential claimants to stay informed and engaged with the ongoing process of this legal action regarding generic drug pricing in the U.S.
Understanding the Settlements
The class action lawsuit, known as In re Generic Pharmaceuticals Antitrust Litigation (No. 16-MD-2724), is currently pending in the United States District Court for the Eastern District of Pennsylvania. Allegations in the case claim that several generic drug manufacturers, including Heritage Pharmaceuticals Inc. and Apotex Corp., violated federal and state antitrust laws as well as consumer protection statutes. This resulted in consumers and third-party payers (such as insurance companies and employers with self-funded prescription plans) paying inflated prices for certain defined generic drugs, referred to as 'Named Generic Drugs.' Despite the serious nature of the allegations, the settling defendants have denied any wrongdoing.
Who is Affected?
The categories of individuals and entities that may qualify for these settlements are quite distinct. Two specific settlement classes have been preliminarily approved: firstly, the EPP Heritage Settlement Class, which encompasses Third Party Payers (TPPs), and secondly, the EPP Apotex Settlement Class, which includes both TPPs and possibly affected consumers. To qualify, TPPs must have indirectly purchased or reimbursed costs for one or more Named Generic Drugs for personal use (and not for resale) during the stipulated period. Importantly, entities listed under certain exclusions will not participate in these settlements.
Financial Breakdown of the Settlements
The settlement agreements detail that Heritage Pharmaceuticals and associated entities have committed to pay $10 million in total for the Heritage Settlement, while Apotex will pay a substantial sum of $48 million under the corresponding settlement class. After covering costs related to the settlement notification, administration, and potentially attorneys' fees, allocated funds will benefit eligible TPP Settlement Class Members. Notably, the anticipated process of claiming settlements will rely heavily on the approval of a proposed Plan of Allocation by the court, which outlines how the available funds will be distributed.
Steps to Receive Payments
As these legal proceedings progress, interested parties will learn more about how they can claim their share of the settlement fund after the Court’s approval. Registration on the designated EPP Settlement Website is urged for updates on claim forms and related news.
What Are Your Options?
Settlement Class Members face some important choices ahead of them. By doing nothing, members automatically remain in the settlement class, accepting the court's ruling as final. However, those who wish to maintain their right to pursue legal claims independently against the settling defendants must proactively exclude themselves from the settlement classes. This exclusion process, along with details regarding objections to the settlements or the proposed attorney fees, must be initiated by a deadline outlined on the settlement website. A Fairness Hearing has also been scheduled, inviting interested parties to present their positions concerning the settlements.
For any inquiries or further information, affected individuals can visit the dedicated website at www.GenericDrugsEndPayerSettlement.com or contact the hotline at 1-877-316-0171. As this situation develops, it remains crucial for all potential claimants to stay informed and engaged with the ongoing process of this legal action regarding generic drug pricing in the U.S.
Topics Policy & Public Interest）
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