Settlement of $275 Million Class Action to Aid Consumers in Prescription Drug Prices

$275 Million Class Action Settlement Announcement

In a vital legal development, Fine, Kaplan, and Black, R.P.C. has unveiled a substantial class action settlement, totaling $275 million, aimed at providing relief to consumers and third-party payers who purchased certain prescription generic drugs in the United States between May 1, 2009, and December 31, 2019. This settlement, authorized by a federal court, represents a significant step in addressing concerns over inflated drug prices stemming from alleged antitrust violations.

The lawsuit, known as In re Generic Pharmaceuticals Antitrust Litigation, claims that defendants, including Sandoz Inc. and Fougera Pharmaceuticals Inc., engaged in activities violating federal and state antitrust laws and consumer protection statutes. Allegations suggest that these actions caused consumers and third-party payers (TPPs), such as insurers, to incur higher costs for specific generic medications across a prolonged period.

Who is Affected?

Consumers and TPPs who indirectly purchased or reimbursed for these named generic drugs may be entitled to a portion of the settlement. Those affected are encouraged to determine their eligibility, as a preliminarily certified class has been established. Exclusions apply to certain entities, and detailed information about what defines a settlement class member is available on the official settlement website.

Settlement Benefits

The proposed agreement will see Sandoz contribute $275 million into a settlement fund. This fund is earmarked for the benefit of eligible settlement class members, although it may be reduced for various administrative costs, including legal fees, litigation expenses, and designated service awards for class representatives.

Upon final court approval, payments will be distributed to qualified claimants based on a Plan of Allocation that the court will review. Specific details about this allocation process and the timeline for claims will be made public as the claims process is initiated. Interested individuals and parties can register for updates regarding the claims process on the settlement website or contact the dedicated hotline.

Options for Settlement Class Members

Settlement class members have specific options moving forward. Those who take no action will remain eligible for the settlement and will be legally bound by the court's decisions regarding the settlement and associated claims against the defendants. Conversely, individuals who wish to preserve their right to pursue independent claims against Sandoz can choose to exclude themselves from the settlement. Instructions for opting out or objecting to the terms of the settlement are provided on the settlement's website.

A fairness hearing is scheduled for July 23, 2025, where the court will assess the settlement's approval, the proposed Plan of Allocation, and any requests for legal fees. Individuals who wish to object or make their voices heard at this hearing must notify the court accordingly. This hearing will provide an opportunity for transparency and discussion related to the settlement terms.

This development marks a significant moment in pharmaceutical litigation, potentially offering relief to numerous consumers and responding to ongoing concerns regarding drug pricing practices in the United States. Keeping abreast of updates through the official channels will be crucial for affected parties.

For additional details about the settlement framework and ongoing updates, individuals should visit www.GenericDrugsEndPayerSettlement.com or reach out via the hotline at 1-877-316-0171 for assistance.