LAWSUITS NEWS & LEGAL INFORMATION
$67M Settlement Reached in Mylan Antitrust Lawsuit
This is a settlement for the Antitrust lawsuit.
Washington, DC: Mylan Pharmaceuticals and chemical companies Cambrex and Gyma Laboratories have been ordered to pay $67 million in fines to end the long-running antitrust lawsuit brought by Blue Cross.
According to the allegations, Mylan had entered into exclusive licensing agreements with Cambrex and Gyma Laboratories, allowing Mylan to inflate prices that Blue Cross Blue Shield (BCBS) of Massachusetts, Blue Cross Blue Shield of Minnesota, Federated Insurance Co. and Health Care Service Corp. paid for anti-anxiety drugs lorazepam and clorazepate.
According to the terms of the deal, BCBS of Massachusetts will receive about $7.4 million in compensatory damages plus prejudgment interest of more than $6.2 million from all three companies. Additionally, it will receive three separate awards totally approximately $14.8 million in punitive damages from each defendant.
BCBS of Minnesota will receive more than $3.6 million plus prejudgment interest of more than $281,000. Federated Insurance will see in excess of $1.2 million plus prejudgment interest of more than $96,000; and Health Care Service, more than $3.8 million in damages.
The Federal Trade Commission (FTC) launched a probe into Mylan’s activity related to the anti-anxiety medications, as well as several lawsuits, all involving similar antitrust allegations. In 2000, Mylan settled with the FTC and a number of state attorneys general for $100 million. In 2000 the company settled with a group of direct purchasers for $47 million.
The case is In Re: Lorazepam/Cloraze et al. v. Mylan Laboratories et al., case number 1:99-mc-00276, in the U.S. District Court for the District of Columbia.
Published on Sep-1-17
According to the allegations, Mylan had entered into exclusive licensing agreements with Cambrex and Gyma Laboratories, allowing Mylan to inflate prices that Blue Cross Blue Shield (BCBS) of Massachusetts, Blue Cross Blue Shield of Minnesota, Federated Insurance Co. and Health Care Service Corp. paid for anti-anxiety drugs lorazepam and clorazepate.
According to the terms of the deal, BCBS of Massachusetts will receive about $7.4 million in compensatory damages plus prejudgment interest of more than $6.2 million from all three companies. Additionally, it will receive three separate awards totally approximately $14.8 million in punitive damages from each defendant.
BCBS of Minnesota will receive more than $3.6 million plus prejudgment interest of more than $281,000. Federated Insurance will see in excess of $1.2 million plus prejudgment interest of more than $96,000; and Health Care Service, more than $3.8 million in damages.
The Federal Trade Commission (FTC) launched a probe into Mylan’s activity related to the anti-anxiety medications, as well as several lawsuits, all involving similar antitrust allegations. In 2000, Mylan settled with the FTC and a number of state attorneys general for $100 million. In 2000 the company settled with a group of direct purchasers for $47 million.
The case is In Re: Lorazepam/Cloraze et al. v. Mylan Laboratories et al., case number 1:99-mc-00276, in the U.S. District Court for the District of Columbia.
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