Recently, Indivior reached a $30 million settlement to resolve a class action lawsuit filed by health plans that accused the company of illegally suppressing generic competition for Suboxone, its opioid addiction treatment. The health plans alleged that Indivior switched to an oral film version of Suboxone from the tablet version, in an attempt to extend its monopoly.
In the lawsuit, the health plans represented members in 48 states, Washington, DC, and Puerto Rico. The plaintiffs alleged that Indivior violated state antitrust and consumer protection statutes, which not only led to the monopoly mentioned above, nut also in turn, its members paying higher prices for Suboxone (and eventually its generic equivalents).
The alleged scheme included a product hop, disparagement of the pill to move market share to the film, price manipulation, a sham Citizen Petition, and delay through sabotage of the REMs process, all intended to delay the onset of generic competition for Suboxone and minimize its effect upon generic entry into the market.
The $30 million settlement from Indivior would go into an escrow fund and be apportioned to the End Payors, divided by state. Roughly $18.5 million would go to End Payors in the states of Alabama, Alaska, Arizona, California, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, 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. The balance will be paid to the End Payors in Arkansas, Colorado, Connecticut, Delaware, Georgia, Idaho, Kentucky, Louisiana, Montana, New Jersey, Oklahoma, Texas, Washington, and Wyoming. The breakdown was reached following arms-length negotiations for attorneys of the two groups.
“We remain focused on helping those suffering from substance use disorders and mental illness,” Indivior CEO Mark Crossley said in a statement. “Resolving these legacy legal matters at the right value helps us further our mission for patients and creates greater certainty for our stakeholders.”
The proposed settlement is still subject to initial approval by the United States District Court for the Eastern District of Pennsylvania, a notice period, participation by an appropriate number of end payors, and final court approval.
This proposed settlement also follows the $102.5 million settlement Indivior reached earlier this year, which settled related claims by 41 states and Washington, D.C., and the 2020 $600 million settlement to resolve allegations that it fraudulently promoted Suboxone. The company still faces a trial scheduled to begin October 30, 2023, in a lawsuit filed by drug wholesalers that purchased Suboxone directly from Indivior.