California Federal Court Approves “Excellent” $166 Million Settlement for Direct Purchasers of Lidoderm
Last week, a federal judge in California approved a $166 million settlement for a class of direct purchasers who bought the pain medication drug Lidoderm. Faruqi & Faruqi served as co-lead counsel for the class and the firm’s Chair of the Pharmaceutical Litigation Department, Peter Kohn, addressed the Court at the final approval hearing.
The settlement marks the culmination of over four years of hard-fought litigation. The plaintiffs alleged that the pharmaceutical brand manufacturer Endo paid its would-be generic competitor, Watson (now known as Actavis), hundreds of millions of dollars to delay entering the market with less-expensive generic versions of Lidoderm for 13 months. This forced direct purchasers to pay higher branded prices rather than lower generic prices for 13 months longer than they otherwise would have.
At the final approval hearing, the U.S. District Judge William H. Orrick III hailed the impressive result that the plaintiffs obtained, stating “[t]he settlement amount you achieved is an excellent amount and is certainly approvable.” He also stated that the “fascinating case” involved “complicated and novel legal issues” and was “very well-litigated by all.” During the hearing, Judge Orrick took note of the fact that plaintiffs’ counsel avoided duplication of work by forming specialized teams that tackled certain issues in the case.
While the Lidoderm case may be concluded, Faruqi & Faruqi continues to fight for direct purchasers of drugs with ongoing cases around the country.
About Faruqi & Faruqi, LLP
Faruqi & Faruqi focuses on complex civil litigation, including securities, shareholder derivative actions, merger litigation, antitrust, employment law, wage and hour, and consumer class actions. The firm is headquartered in New York, and maintains offices in Delaware, Pennsylvania, California, 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.
To contact the author of this blog or the offices of Faruqi & Faruqi, please call us at (877) 476-7797.
About David Calvello
David Calvello is an associate in Faruqi & Faruqi’s New York office. He practices in the area of antitrust litigation and worked on the Lidoderm case, including the successful briefing that led to a waiver of attorney-client privilege.