Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
A class action lawsuit was filed in California federal court alleging that Novo Nordisk and OptumRx schemed together to keep the price of a type-2 diabetes medication artificially high.
Plaintiff Ruth Johnson alleges in her class action lawsuit that OptumRx received money from Novo Nordisk in exchange for keeping the price of her diabetes medication, Victoza, inflated.
The plaintiff furthers claims that OptumRx also funneled business to Novo Nordisk by including Novo’s products in exclusionary tiered formularies that rank drugs.
“[Pharmacy Benefit Managers (PBMs)] are avaricious middlemen with a stranglehold on the medical supply chain,” the class action lawsuit states. “Their scheme to sell formulary access for rebates drives up the cost of prescription drugs and other medical products for the people who need to use them to stay alive.”
Johnson alleges that since 2009, the price of her medication has doubled to nearly $900. Both OptumRx and Novo Nordisk are responsible, says the plaintiff, because they conspired to “game the system” and keep prices inflated. The plaintiff also points out in her complaint that the price of a competing drug has increased drastically, from about $250 in 2009 to more than $800 currently.
According to the class action, OptumRx and other PBMs are supposed to negotiate lower prices, but for these two diabetes drugs, the pharmaceutical company listed the drugs “as the preferred or even exclusive brands on its formularies because this scheme generates profits for OptumRx without actually requiring manufacturers to lower their prices.”
“To gain formulary access, the manufacturers have inflated their list prices and then ‘rebate’ a significant portion of the list price back to PBMs, such as OptumRx,” the class action lawsuit claims. “The rebates are provided under a variety of labels—discounts, credits, concession fees, etc. Regardless of the term used to describe them, they are a quid pro quo for formulary inclusion or preferential placement. The result of this rebating scheme is a vast difference between the list price reported by manufacturers and the net price obtained by the manufacturers after PBMs have taken their rebates.”
The plaintiff seeks to represent a nationwide Class of individuals who purchased Victoza and were required to pay all or a portion of the purchase price. The class action claims include violations of the Racketeer Influenced and Corrupt Organizations Act, California, Michigan, and New Jersey consumer protection laws as well as claims for fraud and unjust enrichment.
The plaintiff is seeking damages along with an injunction against Novo Nordisk and OptumRx from participating in the alleged price-fixing scheme. The plaintiff is also seeking an order compelling the companies to disclose the amount of the kickbacks and the price list, along with attorneys’ fees.
Johnson is represented by Juli E. Farris, Derek W. Loeser and Gretchen S. Obrist of Keller Rohrback LLP.
The Type-2 Diabetes Medication Price-Fixing Class Action Lawsuit is Ruth Johnson v. OptumRx Inc. and Novo Nordisk Inc., Case No. 8:17-cv-00900, in the U.S. District Court for the Central District of California.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
21 thoughts onDiabetes Medication Price Artificially Inflated, Class Action Claims
Tell me something people. Why do we not have a generic for insulin? Cuba has been making it for years and selling it to the European countries but the United States will not let us buy it because the testing is taking forever to go thru. Obviously the people in the European countries and Canada are not dying like flies and are taking it so why can’t we buy it here? It is affordable and available. Why are we letting Eli Lilly and their ilk holding us hostages and keeping us from getting the drugs we really need at an affordable rate?
They give samples to our doctors, believe it or not, who will give them to us, for free. That is the only way I can get mine. I am not ashamed to tell him I can’t afford to pay the out of pocket cost these jerks expect me to pay for my insurance. It is either that or die. So he gives it to me. God bless him. Please people ask your doctor for free samples if he has them they will give them to you.
I am optumRX patient
I am type 2 diabetic.
Optuim RX was our primary medical supplier.
Have been taking Vioxx for many years now.
how do I get in on the law suite
I need Symbicort The price at Costco is $300.
OptumRX is : tear 3# $895.00
Medicare part D is mandatory by US law or be fined
All prices are inflated with Optum RX. Medicare Part D ownes- Optum RX . Optum RX is owned by United Care.
United care is owned by AARP/ AARP IS OWED BY MEDICARE. AARP & Medicare are the same as Mafia. We no longer are a free country. We better sue them.
We have to sue them
PLEASE tell me how I can get in this class action suit….every year my victoza goes up & it’s to the point I can hardly afford it, once I’m in the “donut hole”….please count me in!
Me too!!!
Unfortunately, this lawsuit is only addressing Type 2 diabetic prescription costs. As most type 1 diabetics know, we also have had artificially inflated insulin cost for type 1 diabetics. Cost continue to skyrocket. Canada and Europe countries have stopped the inflated cost of prescriptions by negotiation with the prescription companies, and only okaying a certain dollar amount that the government will pay for medications. Prescription companies okay the amount and provide the medications for the limited costs. It appears that the United States pays the cost due to not addressing this problem, and being capitalistic. Money is more important than life. Also, the insulin providing companies have 10 years to sell their medications before it can go to generic making companies. Insulin companies in the 9th year, modify the prescriptions by a little bit so that no generics can be made. This has been going on for decades now. The United States has failed in the medical area for protecting its people. Watch the movie SICKO by Michael Moore to understand more about how other countries have protected people that depend on medications to stay alive. When it come to medical care and coverage, the United Stated has failed. Good old Capitalism.
I had to put out about $1200. for my diabetic insulin last June. The price had went up and I was in the donut hole in Medicare. It just ruined my budget. I don’t understand how prices can go up so much for a medicine that people need to take to live. They got you over the waterfall.
Each year our RX goes to a different tier and of course the price goes up!
Every time it is time for me to change my Part D Medicare Prescription Plan I call OPTUM RX and get a price quote on their insulins. Every time they give me a great price, BUT come the first of the year and my primary care physician writes out a prescription and faxes it in to these liars! They quote me one price (a low one, mind you; to get you to sign up for their plan before the time frame ends and you are locked in).
Now when they get the prescription from my doctor they call me to approve the cost (normally between $770 and $1400) for a 3 month prescription of either vials (old school which I do not mind) or the new pens which I would rather use but they really want to kill me with the cost. OPTUM RX will tell you one thing while they have you on the phone and approve something else after you hang up after talking to you.
If I did not have such an understanding PCP who provides me with my insulin I would probably be in a coma at this time.