Robins Kaplan LLP Announces Class Action Settlement for Third-Party Payers Who Made Payments or Reimbursed Drug Daraprim from August 7, 2015 to January 28, 2022
NEW YORK, February 25, 2022 /PRNewswire/ —
If you are a Third Party Payer and you have made payments or refunds for all or part of the purchase price of Daraprim from August 7, 2015by January 28, 2022you may be eligible for a payment as part of a class action settlement.
A settlement providing for a total potential cash payment of up to $28 million has been proposed in a class action brought on behalf of third-party payer entities who, for the consumption of their members, employees, insureds, participants or beneficiaries, and not for resale, have indirectly purchased, paid for and/or refunded all or part of the purchase price of Daraprim between August 7, 2015and January 282022.
The trial, titled BCBSM, Inc. v. Vyera Pharmaceuticals, et al., no. 21-cv-1884-DLC, is pending at United States District Court for the Southern District of new York (the court”). Plaintiff in the lawsuit alleges that defendants Vyera Pharmaceuticals, LLC and Phoenixus AG, Martin Shkreliand Kevin Mulleady (collectively, the “Defendants”) engaged in a scheme to thwart generic competition for Daraprim in violation of Sections 1 and 2 of the Sherman Act and various state antitrust, unjust enrichment and protection consumers.
The plaintiff has entered into a settlement proposal that provides for a minimum cash payment to the settlement class of $7 million and additional potential payments of up to $21 million for a total potential settlement amount of up to $28 million (the “Class Settlement Amount”). The settlement is subject to court approval.
Who is included?
The settlement group includes:
All entities which, for the consumption of their members, employees, policyholders, participants or beneficiaries, and not for resale, have indirectly purchased, paid and/or reimbursed all or part of the purchase price of Daraprim between August 7, 2015and January 28, 2022 (the “Class Period”). The following persons are excluded from the settlement class:
(a) Individual consumers;
(b) the defendants and their employees, affiliates, parents and subsidiaries, whether or not named in the complaint;
(c) All federal and state government entities, except cities, towns, or counties with self-funded drug plans;
d) Fully insured health insurance plans (that is to say, health plans that have taken out insurance covering 100% of their reimbursement obligation towards members); and
e) The judges assigned to this case and any member of their immediate family.
If you are a member of the settlement class, your rights will be affected by the pending lawsuit and the settlement, and you may have the right to share in the settlement fund.. If you have not yet received the printed Notice and Claim Form in full, you may obtain copies of these documents by contacting the Claims Administrator at Daraprim TPP Regulationsc/o AB Data, Ltd., PO Box 173115, Milwaukee, Wis. 53217, 1-877-316-0144. Copies of the Notice and Claim Form, as well as other documents related to this lawsuit and a related government lawsuit against the Defendants, may also be downloaded from the website operated by the Claims Administrator,www.DaraprimTPPsettlement.com.
What does the regulation provide?
The proposed settlement provides for a total collective settlement amount of up to $28,000,000. Attorney’s fees (not to exceed 30% of funds received into the class settlement fund), litigation costs, plaintiff service awards, taxes, and notice and administration fees, such as approved by the court, will be deducted from the fund before distribution to the members of the settlement class. A more detailed description of the Class Settlement Amount is available in the Settlement Agreement downloadable at www.DaraprimTPPsettlement.com.
The Net Settlement Fund will be awarded to Settlement Class Members who submit valid Claim Forms based on a plan of distribution to be approved by the Court. Under the Plaintiff’s Proposed Allocation Plan, the Net Settlement Fund will be distributed to Settlement Class Members who indirectly purchased, paid for and/or reimbursed Daraprim in any of the following 36 states and territories during the period of the settlement group: Arizona, Arkansas, California, District of ColombiaFlorida, Hawaii, Idaho, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, new York, North Carolina, North Dakota, Oregon, Pennsylvania, Porto Rico, Rhode Island, Caroline from the south, South Dakota, Tennessee, Utah, Vermont, Virginia, West Virginiaand Wisconsin (“Eligible States”). Net settlement will be distributed over a pro rata to Eligible Claimants based on the amount they paid for Daraprim in Eligible States during the Class Action Period, prorated to the total amount that all Eligible Claimants paid for Daraprim in Eligible States during the Class Period.
How do you get paid?
To receive a settlement payment, simply complete a Claim Form and provide the information requested on the Claim Form, and submit it no later than June 1, 2022. A complaint form is available at www.DaraprimTPPsettlement.com.
What are my legal rights and options?
If you are a Settlement Class Member, please review the full Notice, available at www.DaraprimTPPsettlement.com, regarding your rights and options. Only a summary is provided here.
- stay in the colony To classify and submit a claim form to get paid. Claim Forms must be postmarked (if mailed) or submitted online by June 1, 2022. You waive your right to sue and are bound by all court orders.
- Exclude yourself (“opt out”) of the Settlement Class. A written request for exclusion must be has received by April 18, 2022. You retain your right to sue and you will not receive any payment as a result of this legal action. Please see the full notice for information on how to request exclusion.
- Object settlement, proposed plan of distribution and/or attorney’s request for attorneys’ fees and expenses. Written objections must be has received by May 23, 2022. You waive your right to sue and are bound by all court orders even if your objection is denied. If you file an objection, you may attend the settlement hearing to explain your objection, but you are not required to attend. Please see the full notice for how to file an objection.
- Do not do anything and remain in the settlement group. You waive your right to sue and are bound by all court orders. You must submit a claim form to obtain payment.
The court will determine whether to approve the settlement, along with attorneys’ fees and expenses, at a settlement hearing to be held on June 17, 2022at 10:00 a.m.
The Court has appointed lawyers to represent you at no cost to you. You may choose to hire your own lawyer at your own expense.
Inquiries, other than notice and claim form requests, should be directed to the Acting Lead Counsel:
ACTING SENIOR ADVISOR
ROBINS KAPLAN LLP
900 3rd Ave, Suite 1900
New York, NY 10022
Phone: (212) 980-7400
Fax: (212) 980-7499
Requests for notification and complaint forms should be addressed to:
Daraprim TPP Regulations
c/o AB Data, Ltd.
Milwaukee, Wis. 53217
SOURCERobins Kaplan LLP