In a significant legal resolution, Mylan, now part of Viatris, and Pfizer, have agreed to pay $73.5 million to settle a class action lawsuit. The lawsuit, led by wholesalers such as KPH Healthcare and FWK Holdings, alleges that the companies inflated the prices of the EpiPen through anti-competitive practices. 

Key Events

1. Price Hikes and Allegations: The crux of the lawsuit centers on Mylan and Pfizer's strategies that resulted in an over 600% price hike of EpiPens from $100 for a two-pack in 2008 to $600.

2. Delay of Generic Versions: The plaintiffs accused Mylan and Pfizer of colluding to delay the introduction of affordable, generic EpiPens, which maintained monopolistic high prices.

3. Preliminary Settlement: Filed in January 2025 in a Kansas federal court, this $73.5 million settlement seeks to resolve antitrust claims filed by over 80 drug wholesalers. Notably, Mylan and Pfizer deny any wrongdoing but have agreed to settle to avoid protracted litigation.

4. Continued Legal Battles: Despite this settlement, Mylan still faces additional lawsuits, such as the one filed by Indiana Attorney General Todd Rokita, dealing with similar accusations.

Eligibility Criteria

The settlement targets direct purchasers of EpiPens:

1. Wholesalers: This includes drug wholesalers who bought EpiPen or its generic versions directly from Mylan or Pfizer between 2011 and 2020.

2. Proof of Purchase: Claimants need to provide documented evidence of purchases to be eligible for compensation. lengthy definition of types of proof of purchase. Proof of purchase is a document that serves as evidence that a transaction has occurred, generally falling into several types: receipts or invoices, which list transaction details such as the date, items purchased, amount paid, and seller information; credit card statements, where transactions are highlighted to confirm the purchase in the absence of a receipt; purchase agreements, crucial for significant transactions like real estate, including buyer and seller information, terms of the sale, and payment details; and warranty deeds, primarily for property ownership, documenting the parties involved and property specifics. Each type of proof is used to verify legitimacy, facilitate returns, claims, or warranties, and provide a reliable record of the transaction.

3. Entities Affected: The settlement specifically addresses wholesale purchasers, not consumers or end-users.

The proof of purchase serves as a method to verify that an applicant has made a legitimate transaction. This document is essential in confirming eligibility for various benefits, refunds, warranties, or other services.

Future Process

1. Submission of Claims: Eligible wholesalers must submit their claims by the designated deadline, providing necessary documentation to validate their claims.

2. Objecting and Opting Out: Class members can object to or opt-out of the settlement if they prefer to pursue individual lawsuits. Notices will outline the process for objections and exclusions.

3. Final Approval: The U.S. District Court for the District of Kansas will review the settlement for final approval. A final approval hearing is scheduled, during which class members can present their objections.

Here is a sample calculation for the net recovery of a plaintiff in a 73.5 million dollar class action settlement:

Calculating Net Recovery for a Plaintiff in a Class Action Settlement

Total Settlement Amount

• Settlement Fund: $73,500,000

Deductions from Settlement Fund

1. Attorney Fees: Typically, attorneys take about 25-33% of the total settlement. For our calculation, we'll assume:

   • Attorney Fees (30%): $22,050,000

2. Administrative Costs: These costs include expenses for settlement administration (mailing notices, etc.):

   • Administrative Costs: $1,500,000

3. Incentive Awards: Lead plaintiffs often receive additional compensation:

   • Incentive Awards: $500,000

4. Remaining Settlement Fund:

   • Total Deductions: $24,050,000 (Attorney Fees) + $1,500,000 (Admin Costs) + $500,000 (Incentive Awards) = $26,050,000

   • Remaining Settlement Fund: $73,500,000 - $26,050,000 = $47,450,000

Distribution to Class Members

• Number of Plaintiffs: Let's assume there are 10,000 plaintiffs in the class.

• Net Recovery per Plaintiff:

  • $47,450,000 ÷ 10,000 = $4,745 per plaintiff.

So, each plaintiff in this class action would receive a net recovery of approximately $4,745 from the settlement fund. The actual settlement will vary depending upon actual fee and expense costs and number of plaintiffs.