Last week, a Florida federal judge approved a settlement of nearly $15
million to end a consumer class action lawsuit against Shire US Inc.,
who is accused of paying rival drugmakers to delay selling cheaper versions
of ADD drug Adderall. This matter has been contentiously litigated over
the past three years.
The case dates back to April 2013, when consumers in Pennsylvania and Florida
first accused Shire of creating pay-for-delay settlements in sham patent
litigation against Impax Laboratories Inc. and Teva Pharmaceuticals USA
Inc. in an effort to stave off generic competition for the drug. According
to the lawsuit, this arrangement caused millions of dollars in damages
to consumers and violated antitrust laws established by the U.S. Supreme
Court’s FTC v. Actavis opinion.
The settlement administrator received 23, 452 timely claims requesting
reimbursement for over 855,000 Adderall prescriptions. The settlement
fund is expected to cover all of those claims, with approximately $1 million
leftover. The surplus will be donated to national nonprofit organization
CHADD, a national nonprofit organization dedicated to advocacy and education
for those suffering from attention deficit hyperactivity disorder.
Plaintiffs Jonathan Reisman and Minca Barba were each granted $5,000 service
awards. Ten other plaintiffs also received awards of $2,500 as part of
the judge’s ruling. Similar lawsuits filed in federal courts in
Massachusetts and New Jersey will be dismissed as part of the settlement
The judge has called the settlement amount reasonable and adequate, striking
down three objections challenging the ruling. The judge also granted class
counsel attorneys fees in the amount of $1.3 million in costs in addition
to 35 percent of the settlement.
The case is
Barba et al. v. Shire US Inc. et al., case number 1:13-cv-21158, in the U.S. District Court for the Southern
District of Florida. The plaintiffs were represented by
Richard M. Golomb, and
Kenneth J. Grunfeld of Golomb & Honik, P.C., as well as Brian T. Ku, Louis Mussman and
M. Ryan Casey of Ku & Mussman PA, by Conlee Whiteley, Alan Kanner
and John R. Davis of Kanner & Whiteley LLC, and by Gillian L. Wade
and Sara D. Avila of Milstein Adelman LLP.