Jan 16 (Reuters) - Mylan has agreed to pay $73.5 million
to settle a class action lawsuit by drug wholesalers accusing
the drugmaker of scheming to overcharge them for EpiPen allergy
treatment devices.
The preliminary settlement, filed on Wednesday night in
federal court in Kansas, requires approval by U.S. District
Judge Daniel Crabtree.
Drug wholesalers including KPH Healthcare and FWK Holdings
said Mylan conspired with Pfizer ( PFE ) to delay launching a generic
EpiPen, causing commercial and other buyers to pay more for the
life-saving device. Mylan is now part of Viatris ( VTRS ).
Mylan did not admit to any wrongdoing, and neither did
Pfizer ( PFE ), which settled related claims from the drug wholesalers
for $50 million in 2023.
A representative for Mylan and attorneys for the wholesalers
did not immediately respond to requests for comment.
EpiPens are handheld devices that allow users experiencing
life-threatening allergic reactions to automatically inject a
dose of epinephrine.
Mylan, which owns the rights to market and distribute EpiPen
devices, raised the price of a pair of EpiPens to $600 from $100
in 2008, spurring lawsuits from wholesalers and others. Pfizer ( PFE )
manufactured the EpiPen for Mylan.
Crabtree in December denied a pretrial bid by Mylan to
narrow the lawsuit.
Nearly 80 drug wholesalers are part of the settlement class,
court papers show. The class period includes purchases beginning
in 2014.
The plaintiffs attorneys said they plan to seek up to about
33% in fees from the settlement fund, or about $24.5 million.
A group of consumers in 2021 reached a $345 million
settlement with Pfizer ( PFE ) over related claims, Mylan reached a $264
million settlement with consumers and insurers in 2022.
The case is KPH Healthcare Services Inc v. Mylan NV, U.S.
District Court for the District of Kansas, No. 2:20-cv-02065.
For plaintiffs: Michael Roberts of Roberts Law Firm; and
Linda Nussbaum of Nussbaum Law Group
For Mylan: Adam Levin of Hogan Lovells
Read more:
Pfizer ( PFE ) to pay $50 mln to settle drug wholesalers' EpiPen
antitrust claims
US Supreme Court spurns Sanofi appeal to revive EpiPen suit
against Viatris ( VTRS )