Proposed Settlement Could Cost Drug Manufacturers Almost $22 Million in Refunds

Eleven drug manufacturers have entered into a preliminary settlement with The United States District Court for the District of Massachusetts to cover a lawsuit claiming that the companies artificially inflated the average wholesale price of approximately 200 drugs, thus increasing the co-payments and full payments that consumers and others paid. A full list of the drugs, including Depo prevera, Morphine sulfate, and Sodium chloride can be found at http://www.awptrack2settlement.com.

This preliminary settlement includes almost $21.8 million dollars, which would be distributed to eligible consumers who paid a percentage co-payment or full price of their prescription from January 1, 1991 and March 1, 2008. Those who qualify would receive a minimum of $35 dollars back. Those who paid a flat co-payment would not be eligible under this settlement.

The defending drug companies deny any wrongdoing, but have agreed to the terms of the preliminary settlement in order to resolve the litigation and avoid any further expenses and inconveniences if they were to continue fighting the charges. Council for the plaintiffs Steve W. Berman stated that “the proposed settlement ensures that consumers, Medicare, and insurers have the opportunity to get back some of the money they paid for these drugs.”

On December 16, 2008 the district court will hold a hearing to consider whether this proposal is fair and adequate to cover the potential claims and attorney fees. Detailed information on the drugs, companies and claim forms can be found at AWP Track 2 Settlement.