Purchaser Class Gets Final Approval of $345 million Pfizer Settlement for EpiPen
On November 17, 2021, the U.S. District Court for the District of Kansas granted final approval of a $345 million settlement by Pfizer with a class of purchasers of EpiPen. The purchaser class alleged that Pfizer and Mylan schemed to inflate the price of the EpiPen, an emergency injectable allergy treatment. After attorney’s fees and costs, the remainder of the settlement funds will be divided into two pools, with 80% going to individual consumers and 20% going to third-party payors. Trial is set for January 24, 2022, against the remaining defendant, Mylan.
Last June, the Court granted Mylan summary judgment on claims by purchasers of EpiPen products alleging that Mylan violated the Racketeer Influenced and Corrupt Organizations Act by its marketing and sales tactics for EpiPen and that Mylan violated state antitrust laws by offering rebates to undermine competition. The court, however, found triable issues of fact as to whether Mylan violated state antitrust laws by entering into two settlements with Teva and Sanofi ending patent litigation that were allegedly illegal reverse payment agreements. Trial had been set for September of this year until the preliminary settlement was announced in July.
Another case alleging RICO and antitrust claims focused on the relationship between Mylan and certain PBMs, In re EpiPen Direct Purchaser Litigation, No. 20-cv-0827 (D. Minn.), is pending in the U.S. District Court for the District of Minnesota and has survived a motion to dismiss.
In re: EpiPen (Epinephrine Injection USP) Marketing, Sales Practices and Antitrust Litigation, MDL No. 2785 (D. Kan.)