August 27, 2021

Federal Court Again Declines to Certify a Class in Pay-for-Delay MDL

The U.S. District Court for the Eastern District of Pennsylvania once again declined to certify a class in a suit alleging improper pay-for-delay settlements between AbbVie Inc. and Teva Pharmaceuticals Industries Ltd. 

AbbVie and Teva are currently facing multidistrict litigation from groups of direct-purchasers and end-payors alleging settlement agreements between two predecessor companies were designed to prevent generic versions of Niaspan from hitting the market. 

On August 17, 2021, the court denied the end-payor plaintiffs class certification bid, finding they failed to provide a methodology to identify class members in a “reliable and administratively feasible manner.” The court pointed to the plaintiffs’ inability to distinguish between proposed class members and intermediaries in drug transactions – namely, fully insured health plans – which are excluded from the class. 

The court denied the indirect purchasers’ previous class certification attempt in June 2020. 

AbbVie is represented by Stuart N. Senator of Munger Tolles & Olson LLP. Stuart is a litigation partner focused primarily on complex business litigation in trial and appellate courts, and investigations led by the Federal Trade Commission and Department of Justice. In addition to his work for clients, Stuart is General Counsel to the firm, advising on issues relating to legal ethics and law firm management.

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