Sun, Taro Pharma Reach $85M in Settlements in Drug Price-Fixing MDL

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Sun and Taro Pharma Price-Fixing MDL Settlement Overview:

• Who: Sun Pharma and Taro Pharmaceuticals reached preliminary settlements in multidistrict litigation brought forward by private purchasers of those drugs.
• Why: The two pharmaceutical companies are alleged to have fixed prices of generic drugs. 
• Where: The class action lawsuit was filed in Pennsylvania federal court.

The Sun Pharma and Taro Pharmaceuticals reached preliminary settlements totaling $85 million in multidistrict litigation (MDL) regarding the companies’ alleged price-fixing of generic drugs brought forward by private purchasers of those drugs. 

Sun and Taro have also agreed to cooperate with the plaintiffs in the ongoing MDL against the remaining defendants who have not settled. These remaining companies will be held liable for “Sun’s and Taro’s sales to the extent permitted or authorized by the law,” according to the deal.

Taro, Sun Flexible Settlement Amounts Could Reach $105M

Taro will pay about $67.6 million into the settlement fund, and Sun will pay about $17.4 million to meet the $85 million total, according to court documents. However, depending on the final number of purchasers, after they are given the opportunity to opt out of the settlement, the amount could be reduced to $75 million or increased to $105 million.

The settlement class includes all persons or entities that directly bought one of the generic drugs named in the litigation between May 2009 and December 2019. The named plaintiffs estimate 500 settlement class members throughout the United States.

A “most-favored nation” clause in the deal may lead to further recovery for the settlement class if Taro and Sun reach a more favorable deal with any members who opt out.

The four named plaintiffs seek service awards of $20,000 each, and the proposed class counsel asks for up to one-third of the net settlement amount for attorney fees. The settlement also provides up to $250,000 for reasonable settlement expenses.

Were you affected by Sun Pharma and Taro Pharmaceuticals? You could be eligible for compensation! 

The plaintiffs are represented by Dianne M. Nast of Nastlaw LLC.

Sun and Taro Pharma Price-Fixing Class Action Settlement is In re: Generic Pharmaceuticals Pricing Antitrust Litigation, Case No. 2:16-MD-2724, in the U.S. District Court for the Eastern District of Pennsylvania.

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