In mid-July 2021, Pfizer, Inc. and two of its subsidiaries, Meridian Medical Technologies and King Pharmaceuticals, agreed to pay $345 million to resolve claims by consumers who alleged they overpaid for EpiPens as a result of anticompetitive practices put forth by Pfizer and Mylan.
Plaintiffs initially filed a Consolidated Class Action Complaint, alleging the companies violated the federal Racketeer Influenced and Corrupt Organizations (RICO) Act and state anti-trust laws based on the “allegedly supracompetitive pricing of the EpiPen and related conduct.”
The settlement will be split into two pools of funds: one for individual consumers and one for third-party payors and will be split as a percentage of the relative damages suffered by individuals and third-party payors. Within each pool, the funds will be distributed on a pro rata basis to all eligible Class Members who file a timely and valid Proof of Claim. Any funds that remain in one pool will spill over to the other pool if certain requirements are met.
Pfizer has denied any wrongdoing “and continues to believe that its actions were appropriate.” In the court filing, Pfizer notes that not only has the company not engaged in any wrongdoing as alleged, but also deny liability for any of the claims alleged by the Plaintiffs and deny that Plaintiffs have suffered any injuries or damages. According to the company, a settlement has been reached out of a “desire by the Company to avoid the distraction of continued litigation and focus on breakthroughs that change patients’ lives.”
Paul Geller, one of the lawyers for the plaintiffs, said they were “pleased that Pfizer resolved its part of this class action lawsuit over the pricing of EpiPens.” The settlement must be approved by United States District Judge Daniel Crabtree.
Additional Litigation
Readers may recall that Mylan, now part of Viatris, agreed to pay $465 million in 2017 in response to allegations by the Department of Justice that it overcharged the government for the EpiPen.
As it presently stands, despite Judge Crabtree dismissing many of the allegations against Mylan, there are claims outstanding against Mylan in this case that will continue to trial. The outstanding claims are over a patent settlement the plaintiffs say delayed the launch of a generic epinephrine injector.