Allergan has given its nod to a class action claim worth $30 million for resolving a lawsuit that has accused them of using anti-competitive tactics for raising the price of Restasis eye drops. This settlement is expected to benefit both third-party payors like insurers and employers and consumers. Restasis is an eye drop medicine that treats chronic dry eye syndrome which is a permanent condition caused by using contact lenses, aging, medication, and other related factors. The medicine helps increase tear production to treat chronic dry eye syndrome. The success of Restasis can be immensely attributed to the lack of any proper competing generic product in the market. As per the Drugs Price Litigation Class Action lawsuit Settlement filed against Allergan, this was an intentional move on the part of the company to raise the product price.
According to the plaintiffs, Allergan made use of anti-competitive tactics to obtain an illegal monopoly over its eyedrop medication. This led to the suppression of its generic alternatives and helped Allergan charge a premium price for its products. Allergan also secured fraudulent patents based on this misleading data which claimed that the company found new results for Restasis. These patents were then used by the company for submitting petitions to the U.S. Food and Drug Administration (FDA) and to sue generic competitors. Once the scheme started falling apart, Allergan attempted to claim immunity by transferring its fraudulent patents to the Saint Regis Mohawk Tribe. This forced the third-party payors, and consumers to pay a premium price for the Restasis eye drop brand name than a generic alternative that would have cost them less.
Although Allergan has not agreed to any wrongdoing, they have agreed to resolve the claims through a class action settlement. The Class members can collect a cash payment under the terms of the Restasis price settlement.
Eligibility for Making Claim: You will be deemed eligible to claim if you are a member of the following classes:
Consumer class constituting of all persons who purchased Restasis in a pharmacy for self-use or received it through mail-order prescription between 1st May 2015 and 31st July 2021 in California, the District of Columbia, Arizona, Colorado, Illinois, Florida, Hawaii, Kansas, Iowa, Maine, Michigan, Massachusetts, Mississippi, Minnesota, Montana, Missouri, Nevada, Nebraska, New Mexico, New Hampshire, North Carolina, New York, Oregon, North Dakota, South Dakota, Rhode Island, Utah, Tennessee, West Virginia, Vermont, and Wisconsin or between 1st May 2015 and 31st July 2017 in Arkansas.
Third-party Payors (TPPs) comprise all entities who provided or paid for reimbursement for Restasis purchase for being used by their insureds, members, beneficiaries, or participants. Restasis should have been bought by these persons in a pharmacy or received through mail-order prescription in Hawaii, Kansas, Iowa, Maine, Michigan, Massachusetts, Mississippi, Minnesota, California, the District of Columbia, Arizona, Colorado, Illinois, Florida, Montana, Missouri, Nevada, Nebraska, New Mexico, New Hampshire, North Carolina, West Virginia, Vermont, Wisconsin, New York, Oregon, North Dakota, South Dakota, Rhode Island, Utah, and Tennessee between 1st May 2015 and 31st July 2021 or in Arkansas between 1st May 2015 and 31st July 2017.
However, there are a variety of exclusions from these classes. If you have a fully insured health plan (i.e., a payor purchased the insurance covering 100% of your reimbursement obligation to your members) or a “flat copay” consumer who purchased Restasis through fixed-dollar copayment which doesn’t vary as per the drug’s status as a generic or brand.
Proof of Purchase: As per the Consumer Claim Form, class members might submit proof of purchase “if possible.” This will include all records from your pharmacy that point at your purchase of Restasis at least once or records or a note from your doctor describing the amount of Restasis prescribed for you. However, the TPP Claim Form has extensive documentation requirements in support of the claims. The requirement for third-party payors is:
- NDC Number
- Unique patient identification code or number
- Date of service or fill date
- Billed amount not inclusive of any dispensing fee
- State of service
- Amount paid by the third-party payor, deductibles, net of co-pays, and co-insurance.
- A notation in support of claims for which you are not provided prescription drug coverage as of the date in the item above and instead acted in a third-party administrator or administrative services only capacity.
Potential Claim Amount: Payments will be made as per the terms of the Plan of Allocation. This will be based on the payments made or reimbursed to each class member for Restasis during the class period compared to the amounts reimbursed or paid for by all of the class members during this period. If the net settlement fund is adequate to support this payment then class members will receive at least $15.
Settlement website: RestasisLitigation.com
Objection Deadline: June 7, 2022
Exclusion Deadline: May 3, 2022
Claim Form: Restatis Antitrust Settlement Claim Form
Deadline For Submitting Claim: August 11, 2022
Final Hearing Date: June 7, 2022
Settlement Pool: $29,999,999.99