AWP Track 2 Settlement
Pharmaceutical Industry Average Wholesale Price Litigation
Docket No. 01-CV-12257-PBS, MDL No. 1456

Third-Party Payor Home Page

**UPDATE 7/5/2016**

Check reissue requests are no longer being honored at this time as Class Counsel will soon be seeking leave of the Court to make a second distribution of the remaining residual funds.
  • If You Are a Third-Party Payor and You Reimbursed Any Portion of an Insured’s Medicare Part B Co-Payment for any of the Covered Drugs below from January 1, 1991 through January 1, 2005; or

  • If You Made Reimbursements Outside of Medicare Part B for Any of the Covered Drugs below from January 1, 1991 through March 1, 2008.

The Covered Drugs

These Class Action Lawsuits May Affect Your Rights.

There is a Class Action Settlement with various drug manufacturers (“Defendants”) concerning the drugs listed above. This is a class action lawsuit in the U.S. District Court for the District of Massachusetts. The name of the lawsuit is In re: Pharmaceutical Average Industry Wholesale Price Litigation, Docket No. 01-CV-12257-PBS, MDL No. 1456.

What is the Class Action Lawsuit About?

The lawsuit claims that Defendants reported false and inflated average wholesale prices (“AWP”) for the drugs at issue in this case. The Average Wholesale Price (“AWP”) is used to set reimbursement amounts that are paid by private health insurers. Defendants deny any wrongdoing and the Settlement is not an admission of wrongdoing or an indication that any law was violated.

What Third-Party Payors are Class Members?

Generally speaking, you are a member of one of the Settlement Classes:

  • If you reimbursed any portion of an insured’s Medicare Part B co-payment for any of these drugs from January 1, 1991 through January 1, 2005; or
  • If you made reimbursements outside of Medicare Part B for any of these drugs from January 1, 1991 through March 1, 2008.

Excluded from the Settlement are (1) the Released Companies (Defendants and certain related entities as defined in the Settlement Agreement); (2) all hospitals, clinics, physicians, or physician practice groups, or other health care provider or group of providers, that purchased drugs manufactured, marketed, sold, or distributed by a Released Company, and that (a) administered, dispensed, or prescribed such drugs to a consumer and (b) billed a consumer, TPP, or ISHP for such drugs. Additionally excluded from the Settlement are all federal, state, and local government entities in the United States, except any such governmental agencies or programs that made or incurred an obligation to make a reimbursement for a Class Drug as part of a health benefit plan for their employees, but only with respect to such payment; and certain other independent settling health plans.

What Are the Terms of the Settlement?

Defendants have agreed to pay $125 million to settle claims of TPPs as well as consumers who made percentage co-payments based on AWP. Under the terms of Settlement, 82.5% will be used to satisfy the claims of TPPs who file claims as well as the claims of certain Independent Settling Health Plans (“ISHPs”). The remaining 17.5% of the total Settlement amount will be set aside exclusively to satisfy the claims of consumers.

Who Represents Me?

The Court has appointed attorneys to represent the Classes called “Class Counsel”. Class Counsel will request that the Court award attorneys' fees not to exceed thirty-three and a third percent (33.33%) of the Settlement Fund, plus reimbursement of expenses. You may hire your own attorney, if you wish. However, you will be responsible for that attorney's fees and expenses.


Summary of Your Rights and Choices

You May:
Remain in the Class:

Stay in the Class.

The deadline to file claim has passed. Claims needed to be postmarked on or before March 16, 2009.
Exclude Yourself:

Get out of the Class.

The deadline to file exclusion has passed. Exclusions needed to be postmarked on or before March 16, 2009.
Object to the Proposed Settlement

Object or Comment without excluding yourself.

The deadline to object to the Revised Notice has passed. Objections need to have been filed/served on or before October 21, 2011.