Massachusetts Federal Court Approves Over $70 Million in Pay-For-Delay Settlements
On July 18, 2018, U.S. District Judge Denise J. Casper granted final approval to two settlements between a class of direct purchasers and drugmakers Impax Laboratories Inc. and Medicis Pharmaceutical Corp. to end the pay-for-delay action involving the acne medication Solodyn. Combined with the other settlements in the case, it amounts to more than $70 million.
In giving her preliminary approval for the Impax settlement, Judge Casper said the settlement was “the result of arm’s-length negotiation among sophisticated counsel.” Judge Casper also recently awarded attorneys’ fees and approved requests from class representatives for service awards.
The litigation was centralized in Massachusetts federal court in early 2014 after a host of suits were filed by direct purchasers, indirect purchasers, and individual retailers alleging that Medicis made reverse payments to generic manufacturers to delay generic competition to its drug Solodyn.
Generic drug manufacturers Sandoz Inc. and Lupin Ltd. were also involved in the litigation but settled with the direct and indirect purchasers in April 2017 for a combined $6.7 million to escape the lawsuit.
Faruqi & Faruqi represented the direct purchaser plaintiffs in the litigation.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi focuses on complex civil litigation, including securities, antitrust, consumer and wage and hour class actions, as well as shareholder derivative suits. The firm is headquartered in New York, and maintains offices in California, Delaware, Pennsylvania and Georgia.
Since its founding in 1995, Faruqi & Faruqi has served as lead or co-lead counsel in numerous high-profile cases which ultimately provided significant recoveries to investors, consumers, and employees.
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About Kristyn Fields
Kristyn Fields is an associate in Faruqi & Faruqi, LLP’s New York office. She practices in the area of antitrust litigation with a focus on competition in the pharmaceutical industry.