Government
Lupron maker settles suit over drug's pricing
NEWS IN BRIEF — Posted Dec. 20, 2004
TAP Pharmaceuticals Products has agreed to pay $150 million to settle a nationwide class-action lawsuit alleging that the company overcharged patients and health plans for its drug Lupron.
U.S. District Judge Richard G. Stearns gave preliminary approval to the proposed settlement agreement in late November. If the deal gets final approval, $55 million would go to certain designated health plans. Some $95 million would go to consumers and other health plans, and toward litigation costs and fees. Class members would be reimbursed based on how much Lupron they bought.
TAP Pharmaceuticals did not admit any wrongdoing. It earlier pleaded guilty to a criminal charge and paid the government $875 million.
The government accused TAP of giving physicians free Lupron samples that the government was then billed for when the drugs were given to Medicare patients.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/12/20/gvbf1220.htm.
