UPDATE: On June 2, 2022, the Court entered an Order changing the time of the Fairness Hearing from June 17, 2022 at 10:00 a.m. to June 17, 2022 at 2:30 p.m. A copy of the order can be viewed by clicking here. |
The information contained on this website is only a summary. You may download a copy of the full Notice by clicking here. Since this website is just a summary, you should review the Notice for additional details.
If you are a Third-Party Payor and made payments or reimbursements
for some or all of the purchase price of Daraprim from August 7, 2015,
through January 28, 2022, you may be eligible for a payment from a class action settlement.
The
Settlement provides a minimum cash payment to the Settlement Class of $7
million and additional potential cash payments totaling up to $21 million for a
total potential settlement amount of up to $28 million.
The
lawsuit, BCBSM, Inc. v. Vyera Pharmaceuticals, et al. No. 21-cv-1884-DLC
(the “Action”) is pending in the United States District Court for the Southern
District of New York (the “Court”). The lawsuit claims that Defendants Vyera
Pharmaceuticals, LLC and Phoenixus AG, Martin Shkreli, and Kevin Mulleady
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 consumer protection laws.
WHAT DO THE SETTLEMENTS PROVIDE?
The
Settlement provides a minimum cash payment to the Settlement Class of $7
million and additional potential cash payments totaling up to $21 million for a
total potential settlement amount of up to $28 million.
As
part of the Class Contingent Payments, the Corporate Defendants will pay into
the Class Settlement Fund 14% of the net proceeds they earn from monetizing a Corporate
Asset other than a Priority Review Voucher, and 14% of the net proceeds they
earn from monetizing a Ketamine asset, based on any transactions executed over
the next five years, up to a total of $10.5 million. The Corporate Defendants
will also pay the Settlement Class 14% of the net proceeds they earn from any
transaction monetizing a Priority Review Voucher executed over the next 10
years, with total Class Contingent Payments to the Settlement Class capped at
$21 million.
WHO IS INCLUDED IN THE SETTLEMENT CLASS?
All entities that, for consumption by their members, employees, insureds, participants, or beneficiaries, and not for resale, indirectly purchased, paid, and/or provided reimbursement for some or all of the purchase price of Daraprim during the Settlement Class Period (August 7, 2015, through January 28. 2022. The types of third-party payor entities that might fall within the Settlement Class include health insurance companies; union health and welfare benefit plans; self-insured employers; and entities with self-funded plans that contract with a health insurance company or other entity to serve as a third-party claims administrator to administer their prescription drug benefits.
Excluded from the Settlement Class are the following:
(a) Natural person consumers;
(b) Defendants and their employees, affiliates, parents, and subsidiaries, whether or not named in the Complaint;
(c) All federal and state governmental entities except for cities, towns, municipalities, or counties with self-funded prescription drug plans;
(d) Fully insured health plans (i.e., health plans that purchased insurance covering 100% of their reimbursement obligation to members); and
(e) Judges assigned to this case and any members of their immediate families.
YOUR
LEGAL RIGHTS AND OPTIONS
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FILE A CLAIM
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Third-party payors must submit a
Claim Form postmarked (if mailed) or filed online by June 1, 2022 to
be eligible for a payment from the Settlement. The Claim Form, and instructions on how to
submit it, are available on the Claim Form page of this website.
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EXCLUDE YOURSELF
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You
may exclude yourself from the Settlement Class and keep your right to sue at
your own expense. If you exclude
yourself, you will not receive any payment from the Settlements. A written Request for
Exclusion must be received by April 18, 2022.
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OBJECT TO THE SETTLEMENT
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If
you do not exclude yourself, you may object to or comment on the Settlement,
the proposed Plan of Allocation, and/or the request for attorneys’ fees and litigation
expenses. Written objections must be received by May 23, 2022.
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DO NOTHING
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You are automatically part of the
class action if you fit the definition of the Settlement Class. However, if you do not file a claim by June
1, 2022, you will not receive any payment from the
Settlement.
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