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Mylan $264 Million EpiPen Price-Gouge Deal Gets Final Court Nod

July 12, 2022, 1:42 PM

Consumers and insurers leading price-gouging litigation over the EpiPen, a treatment for life-threatening allergic reactions, won final approval from a federal judge in Kansas for their $264 million settlement with affiliates of Mylan NV, which markets the device.

Judge Daniel D. Crabtree signed off on the deal Monday, resolving class action antitrust claims brought against Mylan in the US District Court for the District of Kansas of behalf of “end payers” like insurers, pension funds, and consumers.

The agreement broadly resembles a previous $345 million pact with Pfizer Inc. affiliates that formerly manufactured the EpiPen. Crabtree approved the Pfizer settlement, including a $115 million payday for the attorneys leading the case, in November 2021. The two deals are worth a combined $609 million.

The settlements don’t directly affect a parallel proposed class action proceeding in a federal court in Minneapolis with claims on behalf of “direct purchasers” like drug distributors.

The end payer settlement is fair, reasonable, and adequate, Crabtree said. Class representatives and their attorneys adequately represented the class, the settlement was produced through arm’s-length negotiation, and the relief takes into account the costs and risks of the litigation, the court said.

The settlement also awards class counsel attorneys’ fees equal to one-third of the amount, or $88 million, and over $1.4 million in costs.

The 35 class representatives will be awarded between $3,000 and $5,000 for their services based on the time and personal risk they incurred, the court said.

Robbins Geller Rudman & Dowd LLP, Keller Rohrback LLP, Sharp Law LLP, Pritzker Levine LLP, and Burns Charest LLP are co-lead counsel for the plaintiffs. Mylan is represented by Hogan Lovells US LLP and Lathrop GPM.

The case is In re EpiPen (Epinephrine Injection, USP) Mktg., Sales Practices & Antitrust Litig., D. Kan., No. 17-md-2785, settlement approved 7/11/22.

To contact the reporter on this story: Mary Anne Pazanowski in Washington at mpazanowski@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Brian Flood at bflood@bloomberglaw.com