$325M Neurontin Class Action Settlement Reached with Third-Party Payors

The manufacturers of the drug Neurontin reached a $325 million class action lawsuit settlement Wednesday over allegations they fraudulently marketed the prescription drug, which is used to treat seizures, restless leg syndrome, and pain caused by shingles. If approved, third-party payers of the drug will be eligible to claim a cash award from the Neurontin class action settlement, announced Friday.

The Neurontin settlement marks the end to a nearly 10-year-old class action lawsuit battle in which plaintiffs, who included both direct purchasers and third-party payers, accused Pfizer of delaying generic versions of Neurontin and promoted the drug for unapproved uses. Pfizer reached a $190 million Neurontin class action settlement with direct purchasers of the drug (consumers) in April.

The plaintiffs in the Neurontin class action lawsuit alleged that Pfizer delayed competition from generic producers of the drug, gabapentin anhydrous, which Pfizer sold under the name Neurotin, by exercising a monopoly over the medicine. The plaintiffs alleged that Pfizer’s actions included illegal off-label promotion, manipulating the patent application process, filing bogus patent lawsuits, and engaging in fraud, which the plaintiffs claim amounted to violations of the Sherman Act.

Additionally, the plaintiffs claimed they had to overpay for Neurontin. In 2004, following an investigation by the U.S. Justice Department, Pfizer pleaded guilty to criminal illegal marketing charges involving Neurontin and was hit with a $430 million fine, sparking the Neurotin class action lawsuit.

The third-party payor plaintiffs included insurance companies, health care benefit providers, union health and welfare plans, and others. The third-party plaintiffs filed a motion for preliminary approval of the Neurontin settlement, which will provide cash awards to third-party payors in the United States who purchased, paid for, administered and/or reimbursed for Neurontin sold by the Defendants or gabapentin sold by Greenstone LLC.

The Neurontin class action settlement reached in April will apply to consumers in the United States that purchased Neurontin from Pfizer at any time during the period of December 11, 2002 through August 31, 2008, and who have purchased generic gabapentin.

Details on how to file a claim for both the consumer Neurontin class action settlement and the third-party payor settlement were not immediately available, but the settlement website for the third-party payors will be www.NeurontinSettlement.com, according to court documents. The site was not live at press time.

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The TPP plaintiffs are represented by Thomas M. Sobol of Hagens Berman Sobol Shapiro LLP, Thomas Greene of Greene LLP, Elizabeth J. Cabraser of Lieff Cabraser Heimann & Bernstein LLP, Don Barrett of Barrett Law Office, Daniel Becnel Jr. of the Law Offices of Daniel Becnel Jr. and James Dugan of Dugan & Browne.

The Neurontin TPP Antitrust Class Action Lawsuit is In re: Neurontin Marketing and Sales Practices Litigation, Case No. 1:04-cv-10981, MDL 1629, in the U.S. District Court for the District of Massachusetts.

The Neurontin Consumer Antitrust Class Action Lawsuit is In re: Neurontin Antitrust Litigation, Case No. 2:02-cv-01390, in the U.S. District Court for the District of New Jersey.

UPDATE: Instructions on how to file a claim for the Neurontin third-party payor class action settlement are now available! Click here or visit www.NeurontinSettlement.com for more information.