Anne Bucher , Abraham Jewett  |  August 23, 2023

Category: Legal News

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Gilead signage, epresenting the Gilead Sciences settlement.
(Photo Credit: Tada Images/Shutterstock)

Update:

  • A group of HIV drug buyers asked a federal court in California to grant them a new trial for claims pharmaceutical companies Gilead and Teva forged an agreement to delay generic versions of the medications Truvada and Atripla. 
  • The HIV drug buyers claim the companies overcharged them by $3.6 billion for the HIV drugs on account of allegedly inflated prices. 
  • The request, which comes from a group that includes insurers United HealthCare, Humana and Kaiser, follows a decision in late June by a jury to reject claims of a “pay-for-delay” deal. 
  • The HIV drug buyers argue the evidence shown to the jury was “stripped of misdirection and distraction” and that a new trial is now necessary. 

Gilead Sciences settlement overview:

  • Who: Gilead Sciences agreed to pay $246.8 million to settle a class action lawsuit direct purchasers of its HIV medications filed.
  • Why: The plaintiffs alleged Gilead made a deal with Teva Pharmaceuticals to delay generic versions of the drugs, causing buyers to pay inflated prices.
  • Where: The Gilead Sciences lawsuit was filed in California federal court.

(Aug. 17, 2023)

Gilead Sciences reached a $246.8 million class action lawsuit settlement with direct purchasers of its HIV medications over allegations it made a deal with Teva Pharmaceuticals to delay generic versions of the drugs, Law360 reports.

On Aug. 9, the direct purchaser plaintiffs filed a motion in California federal court seeking preliminary approval of the Gilead Sciences settlement resolving allegations they overpaid for HIV drugs Atripla and Truvada between February 2018 and September 2022.

The motion states the parties reached the settlement after “years of hard-fought litigation” and negotiations. They reportedly reached a final agreement July 24.

The direct purchasers originally sought about $2 billion in their Gilead Sciences lawsuit. The proposed settlement would cover approximately 12% of their estimated damages.

The plaintiffs say this recovery is significant “given the relatively high risks of no recovery or a substantially reduced recovery.”

The trial would have involved claims from direct buyers and four other groups of plaintiffs with “sometimes diverging interests and trial strategies,” increasing the risk of little to no recovery for the direct purchasers, the motion says.

Teva reportedly filed first Gilead Sciences lawsuit in 2008, paving way for class actions

Teva filed the initial Gilead Sciences lawsuit in 2008, challenging Gilead’s patents for Atripla and Truvada. In response, Gilead sued Teva, but the parties settled their dispute in 2014.

Gilead allegedly offered Teva the opportunity to be the exclusive seller of Atripla and Truvada generics for six months starting Sept. 30, 2020, in exchange for allowing Gilead to continue its monopoly in the meantime, according to the Gilead Sciences lawsuit. 

The patents for the active Atripla and Truvada ingredients reportedly expired in 2021.

In another trial involving claims from indirect purchasers of the HIV drugs, a jury sided with the drugmakers.

In November 2022, U.S. District Judge Edward M. Chen certified multiple classes in the Gilead Sciences lawsuit, including the direct purchaser class. 

They reached a $10.8 million settlement with Bristol-Myers Squibb in October 2022.

What do you think of the proposed Gilead Sciences settlement? Let us know in the comments.

Direct purchaser class members are represented by the Law Offices of Francis O. Scarpulla, NastLaw LLC, Roberts Law Firm US PC and Hausfeld LLP.

The Gilead Sciences lawsuit is In re: HIV Antitrust Litigation, Case No. 3:19-cv-02573, in the U.S. District Court for the Northern District of California.


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2 thoughts onHIV drug buyers seek new antirust trial

  1. KY MINH LE says:

    I took Truvada from some time in 2016 until 2022 then I switched to Descovy. Both drugs are preventive care for HIV. I have not paid anything out of pocket for either of these. Today, August 21st, 2023 I received a check of 110 and change in the mail. I’m not going to not cash the check but I didn’t pay a dime for it.

  2. Douglas Mattox says:

    Please add me

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