“Consumers suffered because these drug companies didn’t play by the rules,” Cooper said. “Today’s settlement should serve as a warning to drug companies who would try to boost their profits by making consumers pay unreasonable prices for the prescription medications they need.”
The proposed $80 million settlement announced by Cooper and attorneys general from 49 other states would resolve an anti-trust lawsuit filed by 50 states against Aventis Pharmaceuticals and Andrx Corporation involving Cardizem CD.
Cooper and the other attorneys general claim that Aventis and Andrx illegally conspired to keep Andrx’s less expensive generic version of the drug off the market. In return, Aventis, maker of name brand Cardizem CD, agreed to pay Andrx nearly $90 million. Delays in bringing the generic drug to market, the states allege, resulted in higher prices for consumers and governmental agencies.
Under terms of the settlement, Aventis and Andrx must pay $80 million into a fund that will compensate consumers, state agencies, and insurance companies who overpaid for Cardizem CD and its generics between 1998 and January 2003.
This agreement is in addition to a $110 million settlement reached earlier between the companies and drug wholesalers over the same alleged violations. In total, Aventis and Andrx will be required to pay more than $190 million.
The recent settlement will become effective pending approval by U.S. Federal District Court Judge Nancy Edmunds in Detroit. If approved, consumers who purchased Cardizem CD or its generic equivalent at any time between January 1998 and January 2003 will be able to file for refunds through a claims administration process that will be announced this summer.
“Consumers paid too much for their prescriptions because they couldn’t get access to a cheaper generic alternative,” Cooper said.
