Mylan, now part of Viatris, has agreed to pay $73.5 million to settle a class action lawsuit filed by drug wholesalers accusing the company of conspiring to overcharge for EpiPen allergy treatment devices. The preliminary settlement, filed in federal court in Kansas, awaits approval by U.S. District Judge Daniel Crabtree.
The lawsuit was brought by drug wholesalers including KPH Healthcare and FWK Holdings, who claimed that Mylan and its partner, Pfizer, delayed the launch of a generic version of the life-saving device. This delay allegedly caused wholesalers, commercial buyers, and consumers to pay inflated prices for EpiPens.
Although Mylan did not admit to any wrongdoing, and neither did Pfizer, the settlement marks the latest resolution in a series of lawsuits involving the controversial price hikes of EpiPens. Pfizer previously settled similar claims for $50 million in 2023.
EpiPens are essential devices used to administer life-saving doses of epinephrine to individuals experiencing severe allergic reactions. Mylan’s price increase of EpiPens from $100 to $600 in 2008 sparked widespread legal challenges from wholesalers and other buyers. Pfizer, which manufactures the EpiPen for Mylan, has also faced similar claims related to the device’s pricing.
The class action settlement includes nearly 80 drug wholesalers and covers purchases dating back to 2014. Plaintiffs’ attorneys are seeking to collect up to 33% of the settlement fund, approximately $24.5 million, in legal fees.
Mylan has previously settled other claims involving price hikes. In 2021, a group of consumers reached a $345 million settlement with Pfizer, and in 2022, Mylan settled with consumers and insurers for $264 million over similar allegations.
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