No Proof: Generic Prescription Drug Price-Fixing Settlements

Individuals who purchased certain generic prescription drugs in the United States between May 1, 2009, and Dec. 31, 2019, may qualify to submit a claim for a cash payment from a class action settlement.

Several generic drug manufacturers, including Heritage Pharmaceuticals Inc., Emcure Pharmaceuticals Ltd., Satish Mehta, Apotex Corp., Bausch Health US LLC, Bausch Health Americas Inc., Lannett Co. Inc., and Glenmark Pharmaceuticals Inc. USA, agreed to pay at least $99 million to settle a class action lawsuit for alleged price-fixing and customer allocation agreements. These lawsuits, brought by state attorneys general, claim consumers overpaid for certain generic prescription drugs as a result of this conduct.

Who can file a claim?

Class members are individuals who purchased one or more of the qualifying generic prescription drugs in the United States or other jurisdictions between May 1, 2009, and Dec. 31, 2019.

• Other jurisdictions include the District of Columbia, Northern Mariana Islands, Puerto Rico and U.S. Virgin Islands.
• Louisiana and Missouri residents are eligible only for a payment from the Apotex, Heritage and the Emcure settlements.
• Alabama, Arkansas, Hawaii and Texas residents are eligible only for a fixed payment from the Apotex settlement.

The settlement determines eligibility by the class member's current state or jurisdiction of residence at the time they submit the claim and not where they made the purchase.

How much are settlement payments?

According to the settlement notices, there is $58.5 million available for distribution. Class members have the following benefit options:

• Claim option 1: Class members can submit a simplified claim for a cash payment equal to other members' cash payments. The claim does not require any purchase information. The settlement administrator will determine the final payment amount by the plan of allocation and the number of valid claims filed.
• Claim option 2: Class members can submit a claim for a cash payment based on their purchase amount. They must specify their out-of-pocket purchase totals during the qualifying period. The settlement administrator will determine the final payment amount by the amount the class member paid and the number of valid claims filed.
• Claim option 2 payments will not be less than claim option 1 payments.

• Alabama, Arkansas, Hawaii or Texas: Residents of these states can submit a claim to receive a fixed cash payment from the Apotex settlement fund. The settlement administrator will determine the final payment amount by the plan of allocation and the number of valid claims filed.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Generic Drugs Settlements - 8769, P.O. Box 2599, Faribault, MN 55021-9599

The claim deadline is March 8, 2027.

Required claim information

To submit a claim option 2 claim, class members must provide the estimated dollar amount they paid for qualifying prescriptions during the class period. The settlement administrator may request additional information at a later date.

Payout options

• Zelle
• PayPal
• Venmo
• Paper check mailed to the address provided

Settlement fund breakdown

According to the settlement notices, the $99,000,000 in settlement funds will include:

• Settlement administration and litigation costs: Estimated $29,950,000
• Apotex settlement to state entities: $11,730,000
• Payments to claimants: Estimated $58,574,403

Important dates

• Deadline to file a claim: March 8, 2027
• Deadline to opt out of the allocation and distribution plan: Aug. 14, 2027
• Final hearing on allocation and distribution plan: Sept. 8, 2027

When is the generic drugs price-fixing settlement payout date?

The settlement administrator will issue payments to approved claimants after it completes claim processing and the court grants final approval of the allocation and distribution plan.

Why is there a class action settlement?

The lawsuits alleged several generic drug manufacturers conspired to fix prices and allocate customers for certain generic prescription drugs sold in the United States. As a result, consumers may have paid more than they should have for these drugs.

The pharmaceutical companies deny the allegations but agreed to settle the claims to avoid further litigation and a possible trial. The settlements do not address the safety or effectiveness of any prescription drugs.

Sources

1. Claim form
2. Class notice
3. Settlement FAQ page