Bernstein Litowitz Berger & Grossmann LLP and Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. Announce Proposed Settlements for Third-Party Payors That Purchased or Paid for Valeant-Branded Drugs
NEW YORK, Sept. 22, 2021 /PRNewswire/ --
If you are a Third-Party Payor and made payments or reimbursements
for Valeant-branded drugs fulfilled through Philidor from January 2, 2013 through November 9, 2015, you may be eligible for payment from a class action settlement.
Two settlements providing for a total cash payment of $23.125 million have been proposed in a class action lawsuit brought on behalf of Third-Party Payors (“TPPs”) who paid or incurred costs for Valeant-branded drugs from January 2, 2013 through November 9, 2015, that were purchased through Philidor Rx Services, LLC (“Philidor”) or any pharmacy in which Philidor had a direct or indirect ownership interest.
The lawsuit, called In re Valeant Pharmaceuticals International, Inc. Third-Party Payor Litigation, Civil Action No. 16-3087-(MAS)(LHG), is pending in the United States District Court for the District of New Jersey (the “Court”). Plaintiffs in the lawsuit allege that Valeant Pharmaceuticals International, Inc. (“Valeant”), Philidor, and other Defendants violated the Racketeer Influenced and Corrupt Organizations Act by causing Third-Party Payors to pay artificially inflated prices for Valeant drugs as a result of a fraudulent scheme in which Valeant secretly controlled a captive pharmacy network through Philidor.
Plaintiffs have reached a proposed settlement with Valeant for $23 million (the “Valeant Settlement”) and a proposed settlement with Philidor, Andrew Davenport, and the Estate of Matthew S. Davenport for $125,000 (the “Philidor Defendants Settlement” and, with the Valeant Settlement, the “Settlements”). The Settlements are subject to Court approval.
Who Is Included?
The Settlement Class includes all health insurance companies, health maintenance organizations, self-funded health and welfare benefit plans, other Third-Party Payors, and any other health benefit provider in the United States of America or its territories that paid or incurred costs for Valeant’s branded drug products in connection with a claim submitted by Philidor, a claim submitted by any pharmacy in which Philidor had a direct or indirect ownership interest, or a claim by any pharmacy for which the amount sought for reimbursement was alleged to be inflated as a result of Defendants’ allegedly fraudulent scheme, from January 2, 2013 through November 9, 2015, and allegedly suffered damages thereby.
Excluded from the Settlement Class are Pharmacy Benefit Managers, Defendants, Defendants’ successors and assigns, and any entity in which any Defendant has or had a controlling interest. Also excluded from the Settlement Class are any persons or entities who submit a Request for Exclusion from the Settlement Class that is approved by the Court.
If you are a member of the Settlement Class, your rights will be affected by the pending Action and the Settlements, and you may be entitled to share in the Settlement Fund. If you have not yet received the full printed Notice and Claim Form, you may obtain copies of these documents by contacting the Claims Administrator at Valeant TPP Settlements, c/o A.B. Data, Ltd., P.O. Box 173052, Milwaukee, WI 53217, 1-877-888-6363. Copies of the Notice and Claim Form can also be downloaded from the website maintained by the Claims Administrator, www.ValeantTPPSettlement.com.
What Do the Settlements Provide?
The proposed Settlements provide a total Settlement Amount of $23,125,000. Attorneys’ fees (not to exceed 30% of the total fund), Plaintiffs’ Counsel’s Litigation Expenses, service awards to Plaintiffs, Taxes, and Notice and Administration Costs, as awarded by the Court, will be deducted from the fund before distribution to Settlement Class Members.
The Net Settlement Funds will be allocated to Settlement Class Members who submit valid Claim Forms based upon a plan of allocation to be approved by the Court. Under Plaintiffs’ proposed Plan of Allocation, the Net Settlement Funds will be distributed on a pro rata basis based on the amount that a Claimant paid for Valeant-branded drugs purchased from or fulfilled by Philidor or a Philidor Network Pharmacy (as defined in the Notice) during the Class Period, in proportion to the total amount that all eligible Claimants paid for Valeant-branded drugs purchased from or fulfilled by Philidor or a Philidor Network Pharmacy during the Class Period.
How Do You Get a Payment?
To receive a payment from the Settlements, simply fill out a Claim Form, and provide the information requested on the Claim Form, and mail it no later than January 6, 2022. A Claim Form is available at www.ValeantTPPSettlement.com.
What Are My Legal Rights and Options?
If you are a Settlement Class Member, please review the full Notice, available at www.ValeantTPPSettlement.com, concerning your rights and options. Only a summary is provided here.
- Remain in the Settlement Class and submit a Claim Form to get payment. Claim Forms must be postmarked (if mailed) or submitted online by January 6, 2022. You give up your right to sue and are bound by all Court orders.
- Exclude yourself (“opt out”) from the Settlement Class. A written Request for Exclusion must be received by November 11, 2021. You retain your right to sue and you will not receive any payment as a result of this lawsuit. Please see the full Notice for information on how to request exclusion.
- Object to one or both of the Settlements, the proposed Plan of Allocation, and/or counsel’s request for attorneys’ fees and expenses. Written objections must be received by November 11, 2021. You give up your right to sue and are bound by all Court orders even if your objection is rejected. If you file an objection, you may appear at the Settlement Hearing to explain your objection, but you are not required to attend. Please see the full Notice for information on how to file an objection.
- Do nothing and remain in the Settlement Class. You give up your right to sue and are bound by all Court orders. You must submit a Claim Form to get a payment.
The Court will determine whether to approve the Settlements, the Plan of Allocation, and attorneys’ fees and expenses at a Settlement Hearing held on December 2, 2021, at 10:00 a.m.
The Court has appointed lawyers to represent you at no cost to you. You may choose to hire your own lawyer at your own expense.
Inquiries, other than requests for the Notice and Claim Form, should be made to Lead Counsel:
BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP
James A. Harrod, Esq.
1251 Avenue of the Americas
New York, NY 10020
CARELLA, BYRNE, CECCHI, OLSTEIN, BRODY & AGNELLO, P.C
James E. Cecchi, Esq.
5 Becker Farm Road
Roseland, NJ 07068
Requests for the Notice and Claim Form should be made to:
Valeant TPP Settlements
c/o A.B. Data, Ltd.
P.O. Box 173052
Milwaukee, WI 53217
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SOURCE Bernstein Litowitz Berger & Grossmann LLP and Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C.