Mylan Pharmaceuticals to pay $73.5M to settle EpiPen direct purchaser class action

EpiPen settlement overview:

• Who: Plaintiffs KPH Healthcare Services Inc., FWK Holdings LLC and César Castillo LLC asked a federal judge to approve a $73.5 million settlement with Mylan N.V., Mylan Pharmaceuticals Inc. and Mylan Specialty L.P.
• Why: The class action settlement ends claims that Mylan conspired with Pfizer and Teva to delay the market entry of generic EpiPens, resulting in higher prices for consumers.
• Where: The EpiPen class action lawsuit was filed in Kansas federal court.

A group of direct purchasers in a class action lawsuit against Mylan Pharmaceuticals asked a Kansas federal judge to approve a $73.5 million settlement resolving claims it conspired with Pfizer and Teva to delay the market entry of generic EpiPens, resulting in higher prices for consumers.

Plaintiffs KPH Healthcare Services Inc., FWK Holdings LLC and César Castillo LLC asked the court to certify a settlement class, grant preliminary approval of the settlement and approve a notice program and plan of allocation.

The deal would end a class action lawsuit filed in 2020 over claims Mylan’s alleged conspiracy with Pfizer and Teva helped it maintain a monopoly on the EpiPen market and allowed it to charge higher prices for the life-saving medication.

The complaint argues Mylan paid Teva to delay the release of its generic version of the EpiPen while Mylan delayed the release of its generic version of Teva’s Nuvigil. 

The direct purchasers further claimed Mylan and Pfizer filed sham patent litigation and created barriers to market entry for other generic manufacturers.

Proposed EpiPen settlement follows $50M Pfizer settlement

Pfizer previously reached a $50 million settlement in 2023, bringing the total recovery for the direct purchaser class to $123.5 million. 

The direct purchasers told the court the Mylan settlement represents a substantial recovery for the class, especially considering the risks of continued litigation.

Mylan denies any wrongdoing or liability related to the allegations in the class action lawsuit but says it agreed to the settlement to avoid the “burden and expense of further litigation.”

The settlement would benefit all persons and entities in the United States, its territories, possessions and the Commonwealth of Puerto Rico, who purchased EpiPen or generic EpiPen directly from Mylan or Teva for resale at any time from March 13, 2014, until the date on which the court enters the preliminary approval order.

In 2022, Mylan agreed to pay $264 million to end similar claims it worked with Pfizer and other companies to increase the cost of the EpiPen. 

What do you think of the EpiPen settlement? Let us know in the comments. 

The EpiPen class action settlement is In re: KPH Healthcare Services Inc., et al. v. Mylan N.V., et al., Case No. 2:20-cv-02065, in the U.S. District Court for the District of Kansas.

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