Pfizer Gets a Dose of Reality, Reaches $345M Settlement in EpiPen Class Action
On Thursday, pharmaceutical giant Pfizer, along with its affiliates Meridian and King Pharmaceuticals, agreed to a $345 million settlement pool for raising the prices of EpiPens. Although Pfizer does not own the rights to EpiPen, that distinction belongs to Mylan, they do produce them. Mylan also faced claims in the same class action, but most of them were dismissed. They will face trial in September for antitrust claims that were not dismissed.
Since Mylan acquired the rights to the EpiPen in 2007, the price of an EpiPen has risen more than 650% from $100 to over $650, an incredibly excessive amount given that the EpiPen is a lifesaving device. This dispute began in 2016 when Pfizer and Mylan faced an avalanche of class action litigation targeting their anti-competitive marketing practices, which included the massive price hikes along with shady deals with other pharmaceutical entities to curb competition. Pfizer did not admit fault in the settlement but agreed because they wanted to “avoid the distraction of continued litigation and focus on changing patients’ lives”, according to a spokesman.
There is currently a site for the class action, epipenclassaction.com. The class period lasts from August 24, 2011 to November 1, 2020 and the class consists of anyone who bought an EpiPen. The settlement fund is still contingent upon the plan of allocation as determined by the court. Furthermore, the judge still needs to approve the settlement fund, but that is more than likely to happen since both sides came to an agreement on it.
As always Certificate Clearing will continue to update you on how this case progresses and would be happy to be your go-to spot for all news surrounding the class action world. Feel free to reach out with any questions or concerns.