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$20M Class-Action Settlement Reached in Acne Drug Case

Acne sufferers are often willing to pay big bucks for treatments that promise clear skin. Now, some pharmaceutical companies are being sued for how they marketed one acne product, Solodyn.

The lawsuit claims that Impax Laboratories, Medicis Pharmaceutical Corp., Sandoz Inc., and Lupin Pharmaceuticals Inc. violated state competition and unjust enrichment laws by agreeing not to compete with one another and keep low-cost generic versions of the drug Solodyn off the market.

The companies deny the claims. No one is claiming that the drug is ineffective or unsafe.

Impax Laboratories, Inc. has agreed to pay $20 million in a Settlement Fund that will cover the cost of claims in the lawsuit. The settlement is in addition to the $23 million announced with Medicis Pharmaceutical Corp.

The Class Counsel will ask the court to award attorneys’ fees in an amount not exceeding one-third of the settlement fund, plus litigation expenses, interest and incentive payments to the Class Representatives. The remainder of the fund will be distributed to Class Members who file a valid claim.

The amount of money received will depend on how much customers paid for Solodyn or a generic version of the drug. Claims are only valid for purchases of the drug or a generic version between July 23, 2009 and February 25, 2018. Those who paid a flat copay to purchase the drug will not be eligible for the settlement. Those who purchased the drug thorugh Medicaid are also ineligible for a claim.

Eligible doses include: 45mg, 55mg, 65mg, 80mg, 90mg, 105mg, 115mg, and 135mg.

Claims must be submitted by July 31, 2018. Eligible Class Members can submit a comment or objection to the proposed settlement, but most do so by June 18, 2018.

A hearing is slated to be held by July 18, 2018 to consider whether the terms of the settlement are fair, adequate and reasonable.

About The Author
Jacob Maslow The senior editor of Legal Scoops, Jacob Maslow, has founded several online newspapers including Daily Forex Report and Conservative Free Press. He also works as an Online Marketing Consultant providing web marketing services.