Overview
This complimentary webinar is for HAP members only. You must register to attend.
In what is being described as the biggest price fixing scheme in U.S. history, more than twenty (20) of the largest generic drug manufacturers stand accused of engaging in an industry-wide conspiracy dating back to, at least, March 2011 to artificially inflate and manipulate the prices of more than 200 different generic drugs, including treatments for diabetes, cancer, arthritis and other medical conditions.
In 2016, the U.S. Department of Justice (DOJ) publicly announced its criminal investigation into pricing in the generic drug industry. The federal investigation has already uncovered rampant criminal conduct, resulting in felony charges against five drug manufacturers (with the most recent set of charges announced in 2020 amidst a global pandemic). Four manufacturers have admitted to their role in the conspiracy and have agreed to provide substantial and ongoing cooperation with the DOJ’s continued investigation (in addition to paying criminal fines exceeding $600 million collectively). The cooperation is expected to significantly advance the government’s investigation and result in more criminal charges.
On the heels of the first criminal indictments, civil suits were filed in 2017, including action filed by the Attorneys General of more than 40 states, as well as numerous class actions, which are designed to address small monetary claims that are not economically viable on their own. The scope of alleged conspiracy continues to expand with the filing of each new complaint and findings from the ongoing DOJ investigation. The various civil actions have been consolidated in an expansive multi-district litigation (MDL) before Judge Rufe in the Eastern District of Pennsylvania. Numerous direct, opt-out actions, in which large purchasers with substantial damages pursue their claims directly against the manufacturers, are also currently being developed across the country.
Hospitals, pharmacies, public and private employers, unions and pension funds that have purchased large amounts of generic drugs may have recovery claims worth many millions of dollars against those who have engaged in price fixing. Claims like these with significant monetary value are assets that institutional stakeholders have an interest in monetizing to the fullest extent possible.
HAP has conducted due diligence regarding this particular recovery opportunity and we are working with BRS LLP, a law firm with extensive experience that specializes in representing large corporate claimants seeking affirmative recoveries in these types of matters on a contingency fee basis. HAP will receive a consulting fee from BRS that comes from their portion of reimbursement; it does not take any money away from hospital recoveries.
To participate, hospitals essentially “opt-out” of any class action suits which only generate pennies on the dollar, in exchange for pursuing direct action where the recovery will be a greater dollar amount, realized sooner. There is no cost for hospitals to participate and BRS does the majority of the work using drug spend data.
We encourage all hospitals to attend the BRS informational webinar and consider how to maximize this opportunity.