Retailers Reach Generic Solodyn Pay-For-Delay Class Action Settlement

Several pharmacies have reached a settlement with Impax Laboratories Inc. in a class action lawsuit accusing Impax of agreeing to delay the release of a generic version of an acne medication called Solodyn (minocycline hydrochloride). Trial for the Solodyn class action lawsuit is continuing into the third week.

The proposed Solodyn settlement will resolve claims brought by retailers The Kroger Co., Walgreen Co., HEB Grocery Co., Safeway Inc., Albertson’s LLC, CVS Pharmacy Inc. and Rite Aid Corp.

Consumers and insurance companies are continuing to fight the Solodyn class action lawsuit at trial. They accuse Impax of conspiring with Medicis Pharmaceuticals Corp. to engage in a scheme to delay the launch of generic Solodyn.

The plaintiffs claim that Impax could have released the generic version of Solodyn in early 2009. Impax disputes this claim, arguing that it would not have launched the generic acne medication before a court clarified the issue of whether it could be liable for patent violations.

The plaintiffs take issue with a $40 million deal Impax made with Medicis. They suspect the substantial payment essentially served as a bribe to delay the launch of generic Solodyn until 2011. Impax maintains the deal was part of a joint agreement for the companies to work together on future projects.

Impax also says the deal with Medicis actually allowed it to release a generic acne medication well before the Solodyn patent expired in 2018. Impax claims that this refutes the plaintiffs’ “pay-for-delay” allegations because it was able to release the acne medication more than six years before the Solodyn patent expired.

The first generic Solodyn pay-for-delay class action lawsuits were filed in 2013. In 2014, a dozen Solodyn antitrust class action lawsuits were consolidated in Massachusetts federal court under the title In re: Solodyn (Minocycline Hydrochloride) Antitrust Litigation.

More information about the retailers’ Solodyn pay-for-delay class action settlement was not immediately available. However, their settlement is not the first to be reached over the pay-for-delay allegations.

In April 2017, drug makers Sandoz Inc. and Lupin Ltd. paid $6.7 million to settle their claims in the Solodyn antitrust class action lawsuit. Valeant Pharmaceuticals reached a settlement last month for $58 million. Earlier this month, Impax reached a $35 million class action settlement with Ahold USA Inc. and Rochester Drug Co-Operative Inc., which represent the direct purchaser Class.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The direct purchasers are represented by Hagens Berman Sobol Shapiro LLP and Berger & Montague PC; the consumers are represented by Motley Rice LLC, Hilliard & Shadowen LLP and Berman DeValerio; Walgreens is represented by Kenny Nachwalter PA; and CVS and Rite Aid are represented by Hangley Aronchick Segal Pudlin & Schiller.

The Generic Solodyn Pay-For-Delay Class Action Lawsuit is In re: Solodyn (Minocycline Hydrochloride) Antitrust Litigation, Case No. 1:14-md-02503, in the U.S. District Court for the District of Massachusetts.

UPDATE: April 2018, the Solodyn generic pay-for-delay class action settlement is now open. Click here to file a claim.

UPDATE 2: On Jan. 6, 2020, Top Class Actions viewers started receiving checks worth as much as $1,575.64 from the Solodyn generic delay class action settlement. Congratulations to everyone who filed a claim and got PAID!