California Federal Court Approves “Excellent” $166 Million Settlement for Direct Purchasers of Lidoderm

Last week, a federal judge in California approved a $166 million settlement for a class of direct purchasers who bought the pain medication drug Lidoderm.  Faruqi & Faruqi served as co-lead counsel for the class and the firm’s Chair of the Pharmaceutical Litigation Department, Peter Kohn, addressed the Court at the final approval hearing.

The settlement marks the culmination of over four years of hard-fought litigation.  The plaintiffs alleged that the pharmaceutical brand manufacturer Endo paid its would-be generic competitor, Watson (now known as Actavis), hundreds of millions of dollars to delay entering the market with less-expensive generic versions of Lidoderm for 13 months.  This forced direct purchasers to pay higher branded prices rather than lower generic prices for 13 months longer than they otherwise would have.

At the final approval hearing, the U.S. District Judge William H. Orrick III hailed the impressive result that the plaintiffs obtained, stating “[t]he settlement amount you achieved is an excellent amount and is certainly approvable.”  He also stated that the “fascinating case” involved “complicated and novel legal issues” and was “very well-litigated by all.”  During the hearing, Judge Orrick took note of the fact that plaintiffs’ counsel avoided duplication of work by forming specialized teams that tackled certain issues in the case.

While the Lidoderm case may be concluded, Faruqi & Faruqi continues to fight for direct purchasers of drugs with ongoing cases around the country.