The U.S. District Court for the Eastern District of Virginia has taken a significant step towards finalizing an antitrust settlement between two pharmaceutical giants. The court has granted preliminary approval for a settlement in the Zetia Antitrust Litigation, which involves the End Payor Plaintiffs (EPPs) and defendants Merck and Glenmark.
The lawsuit alleges that Merck and Glenmark delayed the release of a generic version of Zetia, a cholesterol-lowering medication, resulting in inflated prices for consumers between 2014 and 2019. The case has undergone extensive pretrial activities before the parties reached a settlement agreement.
According to the official court documents, the defendants will pay $70 million into a Settlement Fund. Attorneys' fees and other costs will be withdrawn from this fund, and the remaining amount will be distributed among class members on a pro-rata basis.
The court is currently evaluating the settlement to determine if it is fair and reasonable. Factors being considered include the maturity of the case, the extent of discovery, and the experience of the plaintiffs' counsel. The court documents mention that the case has involved nearly five years of extensive litigation and significant pretrial discovery.
The attorneys for the EPPs have requested approximately $23.3 million from the Settlement Fund as attorneys' fees, along with an additional $3.9 million for costs and $300,000 for class representative incentives. These requests have been deemed reasonable by the court.
With the preliminary approval, all claims against Merck and Glenmark are dismissed with prejudice, meaning they cannot be brought up again. The court will retain jurisdiction to enforce the Settlement Agreement, as stated in the court documents outlining the dismissal.
This antitrust settlement marks a significant development in the Zetia case, bringing it closer to its final resolution. The court's preliminary approval sets the stage for the next steps in the settlement process, including the distribution of funds to class members and the final approval of the settlement.
