Daraprim Antitrust Litigation- Third-Party Payors

Are you a Third-Party Payor that made payments or reimbursements for some or all of the purchase price of Daraprim from August 7, 2015, through January 28, 2022?

If so, you may be eligible for a payment from a class action settlement.

Settlement Total
$28,000,000
Settlement Total
Eligible Purchase Dates
7/20/15 - through 1/28/22
Eligible Purchase Dates
Deadline

0

days
Deadline

Background Information

Plaintiffs allege that Defendants engaged in a scheme to thwart generic competition for Daraprim in violation of Sections 1 and 2 of the Sherman Act and various state antitrust, unjust enrichment, and consumer protection laws. Defendants deny any wrongdoing and liability.  They agreed to the Settlement to resolve the controversy and to avoid the burden and expense of further litigation. The Settlement provides a minimum cash payment to the Settlement Class of $7 million and additional potential cash payments totaling up to $21 million for a total potential settlement amount of up to $28 million.

Settlement Information


Filing Deadline: June 1, 2022


Defendants+

The Defendants (the companies and individuals that the lawsuit is being brought against) are Vyera Pharmaceuticals, LLC and Phoenixus AG (together, “Corporate Defendants”), Martin Shkreli (“Shkreli”), and Kevin Mulleady (“Mulleady,” and collectively with the Corporate Defendants and Shkreli, “Defendants”).


Class Definition/Who May File Claims+

The Settlement Class includes:

All entities that, for consumption by their members, employees, insureds, participants, or beneficiaries, and not for resale, indirectly purchased, paid, and/or provided reimbursement for some or all of the purchase price of Daraprim during the Settlement Class Period (August 7, 2015, through January 28. 2022) in any of the following  36 states and territories during the Settlement Class Period: Arizona, Arkansas, California, District of Columbia, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, and Wisconsin. Excluded from the Settlement Class are the following:

  • Natural person consumers;
  • Defendants and their employees, affiliates, parents, and subsidiaries, whether or not named in the Complaint;
  • All federal and state governmental entities except for cities, towns, municipalities, or counties with self-funded prescription drug plans;
  • Fully insured health plans (i.e., health plans that purchased insurance covering 100% of their reimbursement obligation to members); and
  • Judges assigned to this case and any members of their immediate families.


The types of third-party payor entities that might fall within the Settlement Class include health insurance companies; union health and welfare benefit plans; self-insured employers; and entities with self-funded plans that contract with a health insurance company or other entity to serve as a third-party claims administrator to administer their prescription drug benefits.


Details of Settlement+

The Settlement provides for the payment of up to $28 million into the Class Settlement Fund, including an up-front $7 million Class Guaranteed Payment, and up to $21 million in Class Contingent Payments over time. The amount of the Class Contingent Payments will be based on certain revenues earned by the Corporate Defendants in the future.

As part of the Class Contingent Payments, the Corporate Defendants will pay into the Class Settlement Fund 14% of the net proceeds they earn from monetizing a Corporate Asset other than a Priority Review Voucher, and 14% of the net proceeds they earn from monetizing a Ketamine asset, based on any transactions executed over the next five years, up to a total of $10.5 million. The Corporate Defendants will also pay the Settlement Class 14% of the net proceeds they earn from any transaction monetizing a Priority Review Voucher executed over the next 10 years, with total Class Contingent Payments to the Settlement Class capped at $21 million.  

The Settlement requires Settlement Class Members to release most claims against Defendants that stem from indirect purchases of Daraprim and that are related to the subject matter of this lawsuit. This means that if you remain in the Settlement Class you will not be able to sue the Defendants in a similar lawsuit relating to indirect purchases of Daraprim, with certain exceptions. 


How Are Payments Calculated?+

At this time, it is not possible to make any determination as to how much any individual Settlement Class Member may receive from the Settlement. Under the Settlement, Defendants shall pay or cause to be paid up to a total of $28,000,000 in cash to the Class Settlement Fund.  The Net Settlement Fund, after deduction of attorneys’ fees, litigation expenses, service awards, taxes, administrative costs, as awarded or allowed by the Court, will be distributed in accordance with a plan of allocation to be approved by the Court.

Under Plaintiff’s’ proposed Plan of Allocation, the Net Settlement Fund will be distributed to Settlement Class Members who indirectly purchased, paid, and/or provided reimbursement for Daraprim in any of the following  36 states and territories during the Settlement Class Period: Arizona, Arkansas, California, District of Columbia, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, and Wisconsin (“Eligible States”). The Net Settlement will be distributed on a pro rata basis to eligible claimants based on the amount they paid for Daraprim in the Eligible States during the Settlement Class Period, in proportion to the total amount that all eligible claimants paid for Daraprim in the Eligible States during the Settlement Class Period.


Additional Information+

Recognized Claim: A Claimant’s “Recognized Claim” shall be calculated as the total dollars spent by the Settlement Class Member to indirectly purchase or provide reimbursement for some or all of the purchase price of Daraprim in an Indirect Purchaser State during the Settlement Class Period. The Indirect Purchaser States are Arizona, Arkansas, California, District of Columbia, Florida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginia, and Wisconsin.

Documentation Requirement:  All Claim Forms claiming a Recognized Claim of $100,000 or more require Claim Documentation, as defined below. In addition, Claim Forms below that threshold may be determined to require Claim Documentation by the Claims Administrator where the Claims Administrator disputes a material fact concerning the Claim Form. Absent acceptable Claim Documentation, the Claims Administrator may, in consultation with Lead Counsel, deny all or part of a claim, or may cap payment of a claim at 80% of the amount claimed.

“Claim Documentation” means itemized receipts, cancelled checks, invoices, statements, or other business or transaction records documenting payment for purchases or reimbursement paid for Daraprim in an Indirect Purchaser State during the Settlement Class Period.

Determination of Distribution Amount:  The Net Settlement Fund will be distributed to Authorized Claimants on a pro rata basis based on the relative size of their Recognized Claims.  Specifically, a “Distribution Amount” will be calculated for each Authorized Claimant, which shall be the Authorized Claimant’s Recognized Claim divided by the total Recognized Claims of all Authorized Claimants, multiplied by the total amount in the Net Settlement Fund. 

If an Authorized Claimant’s Distribution Amount calculates to less than $100.00, it will not be included in the calculation and no distribution will be made to that Authorized Claimant.

After the initial distribution of the Net Settlement Fund, the Claims Administrator will make reasonable and diligent efforts to have Authorized Claimants cash their distribution checks.  To the extent any monies remain in the Net Settlement Fund after the initial distribution, if Interim Lead Counsel, in consultation with the Claims Administrator, determines that it is cost-effective to do so, the Claims Administrator, no less than seven (7) months after the initial distribution, will conduct a re-distribution of the funds remaining after payment of any unpaid fees and expenses incurred in administering the Settlement, including for such re-distribution, to Authorized Claimants who have cashed their initial distributions and who would receive at least $10.00 from such re-distribution.  Additional re-distributions to Authorized Claimants who have cashed their prior checks and who would receive at least $10.00 on such additional re-distributions may occur thereafter if Interim Lead Counsel, in consultation with the Claims Administrator, determines that additional re-distributions, after the deduction of any additional fees and expenses incurred in administering the Settlement, including for such re-distributions, would be cost-effective. At such time as it is determined that the re-distribution of funds remaining in the Net Settlement Fund is not cost-effective, the remaining balance will be contributed to one or more non-sectarian, not-for-profit, 501(c)(3) organization(s) to be determined by Lead Counsel and approved by the Court.

Disclaimer

Class members are not required to sign up with any third-party service in order to participate in the monetary relief, but may instead file their claim directly with the Claims Administrator at http://www.daraprimtppsettlement.com/. No-cost assistance will be available from the Class Administrator and Class Counsel during the claims-filing period. For additional information class members may visit court approved website for this case at http://www.daraprimtppsettlement.com, once it goes live.                        

Please note this website and its contents are not substitutes for legal advice. Nothing in this website should be construed as legal advice. Class Action Settlement House, LLC works with companies to assist them in the filing of claims in various class action settlements. However, Class Action Settlement House, LLC is not a law firm and cannot provide legal representation or legal advice. If you are seeking legal advice, please contact counsel of your choice to obtain legal advice.

 

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