Daraprim TPP Settlement

UPDATE: On June 17, 2022, the Court granted final approval to the Settlement and entered Final Judgment. The Corporate Defendants made their first guaranteed payment of $7 million into the Class Settlement Fund on February 22, 2022. The Corporate Defendants have made four additional, contingent payments into the Class Settlement Fund between May 2, 2022 and April 12, 2023, totaling roughly $1,726,363.96. Lead Counsel is evaluating the likelihood and potential timing of any additional contingent settlement payments to determine when distributing the Class Settlement Funds will be most cost-effective. Lead Counsel will move the Court to authorize distribution of the Class Settlement Funds at the soonest cost-effective time, pursuant to the Plan of Allocation and Final Judgment.

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?

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
FILE A CLAIM	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.
EXCLUDE YOURSELF	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.
OBJECT TO THE SETTLEMENT	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.
DO NOTHING	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.