Effexor XR $25,500,000 Antitrust Class Action Settlement

Will Gendron
Editor in Chief
Published
June 27, 2024 8:47 AM
Updated
July 24, 2024
Effexor XR $25,500,000 Antitrust Class Action Settlement
Settlement Open for Claims
Award:
Varies
Deadline:
September 16, 2024
SUBMIT CLAIM

Wyeth has agreed to pay $25,500,000 to settle a class action lawsuit for alleged antitrust violations related to keeping generic versions of Effexor XR off the market. This settlement aims to compensate consumers and third-party payors who overpaid for brand and generic Effexor XR due to the delayed market entry of cheaper generic alternatives.

Can I Claim an Award?

The settlement includes individuals and entities that purchased, paid for, or reimbursed some or all of the cost of Effexor XR or AB-rated generic versions of Effexor XR:

  • Between June 14, 2008, and May 31, 2011
  • In the following states:
    • Arizona
    • California
    • Florida
    • Kansas
    • Maine
    • Massachusetts
    • Michigan
    • Minnesota
    • Mississippi
    • Montana
    • Nevada
    • New Hampshire
    • New Mexico
    • New York
    • North Carolina
    • Oregon
    • Rhode Island
    • South Dakota
    • Tennessee
    • West Virginia
    • Wisconsin.

To be eligible, you must have made these purchases for yourself, your family, or your members, employees, insureds, participants, or beneficiaries. The settlement covers both consumers and third-party payors, such as insurance companies and health plans.

  • Consumers who purchased Effexor XR or its generic versions for personal use.
  • Third-party payors who reimbursed the cost of Effexor XR or its generic versions for their members or beneficiaries.

Who is not Included in the Settlement?

The settlement excludes Wyeth and Teva and their subsidiaries and affiliates, state and local governments that can only make claims through the state Attorney General, anyone who purchased Effexor XR or its generic equivalent for resale, anyone who purchased Effexor XR or its generic equivalent directly from Wyeth, Teva, or their affiliates, fully insured health plans, pharmaceutical benefit managers, the judges in this case and their immediate families, and anyone that properly excludes themselves from the Class.

How Much Can I Claim?

The amount each claimant receives will depend on the total amount of Effexor XR or AB-rated generic versions of Effexor XR they purchased and the total number of claims filed.

The Settlement Fund will be divided into two main categories: one for consumers and another for third-party payors, calculated based on their qualifying purchases.

  • Consumers: 22% of the Net Settlement Fund will be distributed among eligible consumers.
  • Third-Party Payors: 78% of the Net Settlement Fund will be distributed among eligible third-party payors.

Is Proof Required to Claim the Reward?

Yes, proof is required to claim an award:

  • Consumers: Documentation of purchases.
  • Third-Party Payors: Transaction data supporting their claims.

How to Claim Your Award

To claim your award, you must complete and submit a valid Claim Form. You can file a claim online by visiting file a claim online. Alternatively, you can mail your Claim Form to the Claims Administrator at the address provided below. Claim Forms must be postmarked by September 16, 2024.

For those submitting by mail, send your completed Claim Form to:

Effexor XR Indirect Purchaser Settlement

c/o A.B. Data, Ltd.

P.O. Box 173005

Milwaukee, WI 53217

How do I Get Paid?

Once your claim is approved, you will receive your payment via check or direct deposit, depending on the information you provide in your Claim Form. The exact timing of the payments will depend on the Court's approval and the resolution of any appeals.

$25,500,000 Settlement Fund Breakdown

The total settlement amount is $25.5 million. This fund will cover payments to eligible Class Members, notice and administration costs, service awards to the class representatives, and attorneys' fees, costs, and expenses.

Class Counsel will request attorneys' fees of up to 34% of the Settlement Fund, plus costs and expenses. Service awards of up to $15,000 each will be requested for the class representatives for their efforts in bringing the lawsuit.

Important Dates

  • Fairness Hearing: September 12, 2024
  • Deadline to File a Claim: September 16, 2024

Why is There a Class Action Settlement?

The lawsuit alleges that Wyeth engaged in anticompetitive practices to delay the entry of generic versions of Effexor XR into the market. Specifically, it claims that Wyeth obtained patents it should not have and used them to wrongfully sue generic manufacturers, delaying the availability of cheaper generic alternatives. Additionally, Wyeth is accused of entering into an unlawful agreement with Teva to delay the sale of its generic version of Effexor XR.

By settling, Wyeth avoids the costs and uncertainties of a trial, and Class Members receive compensation for their overpayments. The settlement does not imply that Wyeth admits to any wrongdoing.

What is Effexor XR and Its Generic Equivalents?

The settlement concerns Effexor XR, a medication used to treat depression, anxiety, and panic disorders, and its AB-rated generic equivalents.

Notice Letter

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Status
Open for Claims
Category
Antitrust
Settlement Amount
$25,500,000
Award
Varies
Is Proof Required?
Proof Required
Proof Required
Days Remaining to file Claim
54
Claim Deadline
September 16, 2024
Fairness Hearing
September 12, 2024
Final Approval Hearing
Case Number
3:11-cv-05479
Case Title
In re Effexor XR Antitrust Litigation
State
Court
Jurisdiction
Claims Administrator
A.B. Data, Ltd. P.O. Box 173005 Milwaukee, WI 53217 1-877-933-2882 info@EffexorXRIndirectSettlement.com
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