Allergan Preliminarily Settles Restasis End-Payor Class Action

On October 13, 2021, Allergan announced a $30 million preliminary settlement with a certified class of end payors of Allergan’s dry-eye drug Restasis. Approximately 18 months ago, Allergan had settled four direct purchaser actions for a total of $51 million.

U.S. District Court Judge Nina Gershon of the U.S. District Court for the Eastern District of New York certified a class of end-payors on May 5, 2020. After much discussion about a novel notice plan, the plan was approved and the opt-out deadline was set for July 19, 2021. It is unclear whether the court will provide a second opportunity to opt-out given the settlement.

This case alleges that Allergan misused citizen petitions, fraudulently obtained secondary patents, wrongly submitted those patents to the U.S. Food and Drug Administration to block generic approvals, filed flimsy patent infringement suits, and improperly transferred its weak patents to a Native American tribe in an effort to prevent their invalidation, all in an effort to delay generic competition.  

In re: Restasis (Cyclosporine Ophthalmic Emulsion) Antit. Litig., No: 1:18-md-02819 (E.D.N.Y.)