Pfizer to Settle Neurontin Antitrust Class Action Lawsuit for $190M

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Pfizer Inc. has agreed to a $190 million class action settlement that, if approved, would resolve claims that it delayed generic versions of its epilepsy drug Neurontin and promoted it for unapproved uses.

The class action lawsuit was initially filed more than a decade ago by direct purchasers of Neurontin. The plaintiffs alleged that Pfizer violated the Sherman Act by maintaining a its monopoly power with respect to gabapentin anhydrous, which it sold under the brand name Neurontin, and effectively delayed competition from generic versions of the drug through a multi-faceted scheme.

According to the Neurontin class action lawsuit, Pfizer engaged in illegal off-label promotion, manipulated the patent application process, filed bogus patent lawsuits and engaged in fraud. As a result of Pfizer’s allegedly illegal actions, the direct purchasers claim they were forced to pay artificially inflated prices for the epilepsy drug.

In 2004, Pfizer pleaded guilty to criminal charges of illegally marketing Neurontin and agreed to pay $430 million following an investigation by the U.S. Justice Department.

On Jan. 25, 2011, the court certified a class consisting of: “All persons or entities in the United States that purchased Neurontin from Pfizer at any time during the period of December 11, 2002 through August 31, 2008 and who have purchased generic gabapentin.” Louisiana Wholesale Drug Company Inc., Meijer Inc. and Meijer Distribution Inc. were appointed to represent the members of the Neurontin class action lawsuit.

On Monday, Louisiana Wholesale and Meijer filed a motion requesting the preliminary approval of the Pfizer Neurontin class action settlement. They claim that the settlement was reached after “intensive arms’-length negotiations, including multiple mediation sessions held with a skilled mediator,” as well as substantial discovery.

Under the terms of the Neurontin class action settlement, Pfizer will pay $190 million in cash, plus interest, to the plaintiffs and Class Members in exchange for dismissal of the litigation.

More information about how to file a claim for the Neurontin class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive automatic notifications when this article is updated.

Pfizer has denied any wrongdoing, but agreed to settle the Neurontin class action lawsuit to put an end to the lengthy litigation process. In a statement, Pfizer said that the class action settlement “reflects a desire by the company to concentrate on its business and the needs of patients and prescribers, while also reducing the cost and distraction of prolonged litigation.”

The direct purchaser plaintiffs are represented by Jonathan D. Clemente of Clemente Mueller PA, Bruce E. Gerstein of Garwin Gerstein & Fisher LLP and Richard J. Kilsheimer and Robert N. Kaplan of Kaplan Fox & Kilsheimer LLP.

The Neurontin Antitrust Class Action Lawsuit is In re: Neurontin Antitrust Litigation, Case No. 2:02-cv-01390, in the U.S. District Court for the District of New Jersey.

UPDATE: Pfizer reached a separate Neurontin class action settlement with third-party payors on May 28, 2014. Read more.

UPDATE 2: Instructions on how to file a claim for the Neurontin third-party payor class action settlement are now available! Click here or visit www.NeurontinSettlement.com for more information.