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In re Nexium (Esomeprazole) Antitrust Litig.

United States District Court, D. Massachusetts
Nov 14, 2013
296 F.R.D. 43 (D. Mass. 2013)

Opinion

          For Allied Services Division Welfare Fund, Laborers International Union of North America Local 17 Health Care Fund, Consolidated Plaintiffs: David B. Franco, LEAD ATTORNEY, PRO HAC VICE, The Dugan Law Firm, APLC, New Orleans, LA; Douglas R. Plymale, James R. Dugan, II, LEAD ATTORNEYS, The Dugan Law Firm, New Orleans, LA; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA; Thomas G. Shapiro, Shapiro Haber & Urmy LLP, Boston, MA.

         For Laborers International Union of North America Local 35 Health Care Fund, Consolidated Plaintiff: Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA; Thomas G. Shapiro, Shapiro Haber & Urmy LLP, Boston, MA.

         For A.F. of L. - A.G.C. Building Trades Welfare Plan, Consolidated Plaintiff: Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For American Sales Company, LLC, On behalf of itself and all others similarly situated, Consolidated Plaintiff: Andrew J. Vasicek, David S. Nalven, Thomas M. Sobol, LEAD ATTORNEYS, Donna M. Evans, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Kristen Johnson Parker, LEAD ATTORNEY, PRO HAC VICE, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Don Barrett, Barrett Law Office, Lexington, MS; John D. Radice, Radice Law Firm, PC, Long Beach, NJ.

         For Value Drug Company, Consolidated Plaintiff: Brian D. Brooks, LEAD ATTORNEY, Smith Segura & Raphael LLP, New York, NY; Ephraim R. Gerstein, LEAD ATTORNEY, PRO HAC VICE, Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Joseph Opper, LEAD ATTORNEY, PRO HAC VICE, Garwin, Bronzaft, Gerstein & Fisher, New York, NY; Peter S. Pearlman, LEAD ATTORNEY, PRO HAC VICE, Cohn, Lifland, Pearlman, Herrmann & Knopf, Saddle Brook, NJ; Russell A. Chorush, LEAD ATTORNEY, PRO HAC VICE, Heim Payne & Chorush LLP, Houston, TX; Susan C. Segura, LEAD ATTORNEY, Smith Segura & Raphael, LLP, Alexandria, LA; Thomas M. Sobol, LEAD ATTORNEY, Donna M. Evans, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Elena Chan, PRO HAC VICE, Garwin Gerstein & Fisher LLP, New York, NY.

         For Burlington Drug Company Inc., Consolidated Plaintiff: Brian D. Brooks, LEAD ATTORNEY, Smith Segura & Raphael LLP, New York, NY; Ephraim R. Gerstein, LEAD ATTORNEY, PRO HAC VICE, Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Peter S. Pearlman, LEAD ATTORNEY, PRO HAC VICE, Cohn, Lifland, Pearlman, Herrmann & Knopf, Saddle Brook, NJ; Russell A. Chorush, LEAD ATTORNEY, PRO HAC VICE, Heim Payne & Chorush LLP, Houston, TX; Susan C. Segura, LEAD ATTORNEY, Smith Segura & Raphael, LLP, Alexandria, LA; Thomas M. Sobol, LEAD ATTORNEY, Donna M. Evans, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Elena Chan, PRO HAC VICE, Garwin Gerstein & Fisher LLP, New York, NY.

         For Rochester Drug Co-Operative, Inc., On Behalf of itself and all others similarly situated, Consolidated Plaintiff: Archana Tamoshunas, LEAD ATTORNEY, Taus, Cebulash & Landau, LLP, New York, NY; Caitlin G. Coslett, Daniel C. Simons, LEAD ATTORNEYS, PRO HAC VICE, Berger & Montague PC, Philadelphia, PA; David F. Sorensen, PRO HAC VICE, Eric L. Cramer, LEAD ATTORNEYS, Berger & Montague, P.C., Philadelphia, PA; Joseph T. Lukens, LEAD ATTORNEY, FARUQI & FARUQI, JENKINTOWN, PA; Nicholas Urban, LEAD ATTORNEY, Daniel Walker, PRO HAC VICE, Berger & Montague, PC, Philadelphia, PA; Peter Kohn, LEAD ATTORNEY, PRO HAC VICE, Faruqi & Faruqi LLP, Jenkintown, PA; Thomas M. Sobol, LEAD ATTORNEY, Donna M. Evans, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY.

         For Laborers International Union of North America Local 345 Health Care Fund, On behalf of itself and all others similarly situated, Consolidated Plaintiff: Douglas R. Plymale, James R. Dugan, II, LEAD ATTORNEYS, The Dugan Law Firm, New Orleans, LA; Frank R. Schirripa, LEAD ATTORNEY, PRO HAC VICE, Hach Rose Schirripa & Cheverie, LLP, New York, NY; Michael A London, LEAD ATTORNEY, Douglas & London, New York, NY; Michael Aaron Rose, LEAD ATTORNEY, Hach & Rose, New York, NY; Virginia E Anello, LEAD ATTORNEY, Douglas & London, P.C., New York, NY; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY.

         For Walgreen Co., The Kroger Co., Safeway Inc., Supervalu, Inc., HEB GROCERY CO. LP, Consolidated Plaintiffs: Anna T. Neill, Lauren C. Ravkind, LEAD ATTORNEYS, PRO HAC VICE, Kenny Nachwalter, P.A., Miami, FL; Douglas H. Patton, Scott E. Perwin, LEAD ATTORNEYS, Kenny Nachwalter, P.A., Miami, FL.

         For Giant Eagle, Inc, Consolidated Plaintiff: Bernard D. Marcus, Moira E. Cain-Mannix, LEAD ATTORNEYS, Marcus & Shapira, Pittsburgh, PA; Brian C. Hill, Jonathan D. Marcus, LEAD ATTORNEYS, Marcus & Shapira LLP, Pittsburgh, PA; Anna T. Neill, Kenny Nachwalter, P.A., Miami, FL.

         For Rite Aid Corporation, Rite Aid Headquarters Corporation, JCG (PJC) USA, LLC, Maxi Drug, Inc., doing business as Brooks Pharmacy, Eckerd Corporation, Consolidated Plaintiffs: Barry L. Refsin, LEAD ATTORNEY, PRO HAC VICE, Hangley, Aronghick, Segal, Pudlin & Schiller, Philadelphia, PA; Douglas H. Patton, LEAD ATTORNEY, Anna T. Neill, Kenny Nachwalter, P.A., Miami, FL; Monica L. Rebuck, LEAD ATTORNEY, PRO HAC VICE, Hangley Aronchick Segal Pudlin & Schiller, Harrisburg, PA.

         For Amerisourcebergen Drug Corporation, Intervenor Plaintiff: Donald W. Myers, LEAD ATTORNEY, PRO HAC VICE, Buchanan Ingersoll & Rooney PC, Philadelphia, PA.

         For Meijer, Inc., Meijer Distribution, Inc., Plaintiffs: David P. Germaine, John P. Bjork, LEAD ATTORNEYS, PRO HAC VICE, Vanek Vickers & Masini PC, Chicago, IL; JAMES E. CECCHI, LEAD ATTORNEY, CARELLA BYRNE CECCHI OLSTEIN BRODY & AGNELLO, P.C., ROSELAND, NJ; Linda P. Nussbaum, LEAD ATTORNEY, PRO HAC VICE, Peter A. Barile, III, Grant & Eisenhofer PA, New York, NY; Lindsey H. Taylor, LEAD ATTORNEY, CARELLA, BYRNE, CECCHI, OLSTEIN, BRODY & AGNELLO, ROSELAND, NJ; Thomas M. Sobol, LEAD ATTORNEY, Donna M. Evans, Hagens Berman Sobol Shapiro LLP, Cambridge, MA; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY.

         For Fraternal Order of Police Miami Lodge 20 Insurance Trust Fund, Plaintiff: Anne K. Fornecker, HILLIARD & SHADOWEN LLC, AUSTIN, TX; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Jayne A. Goldstein, Pomerantz Grossman Hufford Dahlstrom & Gross, LLP, Weston, FL; Natalie Finkelman Bennett, Shepherd, Finkelman, Miller & Shah, LLP, Media, PA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA; Steve D. Shadowen, Hilliard & Shadowen LLC, Mechanicsburg, PA.

         For New York Hotel Trades Council and Hotel Assoc. of New York City, Inc. Health Benefits Fund, Plaintiff: Christopher Lometti, LEAD ATTORNEY, Cohen Milstein Sellers & Toll PLLC, Washignton, DC; J. Douglas Richards, Sharon K. Robertson, LEAD ATTORNEYS, PRO HAC VICE, George Farah, Cohen Milstein Sellers & Toll PLLC, New York, NY; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For United Food Workers and Commercial Workers Unions and Employers Midwest Health Benefits Fund, Plaintiff: Bethany R. Turke, Edward A. Wallace, Justin N. Boley, Kenneth A. Wexler, LEAD ATTORNEYS, PRO HAC VICE, Wexler Wallace LLP, Chicago, IL; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Jonathan Shapiro, Stern, Shapiro, Weissberg & Garin, Boston, MA; Kimberly A. Dougherty, Janet Jenner & Suggs, LLC, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For Michigan Regional Council of Carpenters Employee Benefits Fund, Plaintiff: Christopher M. Burke, Walter W. Noss, LEAD ATTORNEYS, PRO HAC VICE, Scott & Scott LLP, San Diego, CA; Donald A. Broggi, LEAD ATTORNEY, PRO HAC VICE, Joseph P. Guglielmo, Scott & Scott LLP, New York, NY; Lisa J. Rodriguez, LEAD ATTORNEY, Rodriguez & Richards, LLC, Haddonfield, NJ; NICOLE M. ACCHIONE, LEAD ATTORNEY, TRUJILLO RODRIGUEZ & RICHARDS, LLP, HADDONFIELD, NJ; Penelope Abdiel, LEAD ATTORNEY, PRO HAC VICE, Scott + Scott, Attorneys at Law, LLP, New York, NY; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For International Union of Machinists and Aerospace Workers District No. 15 Health Fund, Plaintiff: Brian D. Penny, LEAD ATTORNEY, PRO HAC VICE, Goldman Scarlato Karon & Penny PC, Wayne, PA; Kevin P. Roddy, LEAD ATTORNEY, PRO HAC VICE, Wilentz, Goldman & Spitzer PA, Woodbridge, NJ; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For International Brotherhood Of Electrical Workers Local 595 Health And Welfare Fund, Plaintiff: Aaron D. Kaufmann, LEAD ATTORNEY, PRO HAC VICE, Leonard Carder LLP, Oakland, CA; Christina C. Sharp, LEAD ATTORNEY, PRO HAC VICE, Girard Gibbs LLP, San Francisco, CA; Daniel C. Girard, LEAD ATTORNEY, PRO HAC VICE, Girard Gibbs & DeBartolomeo LLP, San Francisco, CA; Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA; Nathaniel L. Orenstein, Berman DeValerio Pease Tabacco Burt & Pucillo, Boston, MA.

         For A.F. of L., Plaintiff: Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Glen DeValerio, Berman DeValerio, Boston, MA.

         For Plaintiffs, Plaintiff: David F. Sorensen, Berger & Montague, P.C., Philadelphia, PA.

         For Dr. Reddy's Laboratories Ltd., Dr. Reddy's Laboratories, Inc., Defendants: Alan H. Pollack, Ellen T. Lowenthal, LEAD ATTORNEYS, PRO HAC VICE, Budd Larner PC, Short Hills, NJ; Andrew J. Miller, LEAD ATTORNEY, Budd Larner PC, Short Hills, NJ; Brian T. Moriarty, LEAD ATTORNEY, Hamilton Brook Smith & Reynolds, P.C., Boston, MA; John M. Gore, Jonathan B. Berman, Kevin D. McDonald, Stephanie L. Resnik, LEAD ATTORNEYS, PRO HAC VICE, Jones Day, Washington, DC; Andrew D. Lazerow, Covington & Burling LLP, Washington, DC; Christopher K. Albert, Hamilton Brook Smith & Reynolds, P.C., Concord, MA.

         For AstraZeneca LP, Defendant: Ashley E. Bass, Courtney R. Forrest, Einar Stole, Enrique D. Longton, Evie Spanos, Thomas A. Isaacson, LEAD ATTORNEYS, Andrew D. Lazerow, Jonathan Gimblett, PRO HAC VICE, Covington & Burling LLP, Washington, DC; Benjamin M. Greenblum, Jonathan B. Pitt, Kannon K. Shanmugam, Marcie R. Ziegler, Stanley E. Fisher, LEAD ATTORNEYS, Adam R. Tarosky, James H. Weingarten, John E. Joiner, John E. Schmidtlein, Paul B. Gaffney, PRO HAC VICE, Williams & Connolly LLP, Washington, DC; Dane H. Butswinkas, PRO HAC VICE, Williams & Connolly, Washington, DC; Michael P. Kelly, PRO HAC VICE, McCarter & English LLP, Wilmington, DE; Nicholas W. Allen, William A. Zucker, McCarter & English, LLP, Boston, MA; Timothy C. Hester, Covington & Burling, Washington, DC.

         For RANBAXY LABORATORIES, LTD., Ranbaxy Inc., Ranbaxy Pharmaceuticals, Inc., Defendants: Lisa Jose Fales, Sarah Choi, LEAD ATTORNEYS, PRO HAC VICE, Danielle R. Foley, Venable LLP, Washington, DC; Andrew D. Lazerow, Covington & Burling LLP, Washington, DC; James Douglas Baldridge, PRO HAC VICE, Venable LLP, Washington, DC; Leslie F. Su, Minerva Law, P.C., Andover, MA.

         For Astrazeneca AB, Defendant: Ashley E. Bass, Courtney R. Forrest, Einar Stole, Enrique D. Longton, Evie Spanos, Thomas A. Isaacson, LEAD ATTORNEYS, Andrew D. Lazerow, Jonathan Gimblett, PRO HAC VICE, Covington & Burling LLP, Washington, DC; Benjamin M. Greenblum, Jonathan B. Pitt, Kannon K. Shanmugam, Marcie R. Ziegler, Stanley E. Fisher, LEAD ATTORNEYS, Adam R. Tarosky, James H. Weingarten, John E. Joiner, John E. Schmidtlein, Paul B. Gaffney, PRO HAC VICE, Williams & Connolly LLP, Washington, DC; Dane H. Butswinkas, PRO HAC VICE, Williams & Connolly, Washington, DC; Michael P. Kelly, PRO HAC VICE, McCarter & English LLP, Wilmington, DE; Timothy C. Hester, Covington & Burling, Washington, DC.

         For Ranbaxy Laboratories, LTD, Defendant: James Douglas Baldridge, LEAD ATTORNEY, PRO HAC VICE, Venable LLP, Washington, DC; Andrew D. Lazerow, Covington & Burling LLP, Washington, DC.

         For TEVA USA, INC., Teva Pharmaceutical Industries, Ltd., Defendants: Adam L. Sisitsky, Laurence A. Schoen, LEAD ATTORNEYS, Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC, Boston, MA; Katie Einspanier, Thea Cohen, LEAD ATTORNEYS, Christopher M. Jackson, Karen N. Walker, Rebecca A. Koch, PRO HAC VICE, Kirkland & Ellis LLP, Washington, DC; Andrew D. Lazerow, Covington & Burling LLP, Washington, DC; Jay P. Lefkowitz, PRO HAC VICE, Kirkland & Ellis LLP, New York, NY.

         For Aktiebolaget Hassle, Defendant: Ashley E. Bass, Courtney R. Forrest, Einar Stole, Enrique D. Longton, Evie Spanos, Thomas A. Isaacson, LEAD ATTORNEYS, PRO HAC VICE, Andrew D. Lazerow, Covington & Burling LLP, Washington, DC; Benjamin M. Greenblum, Jonathan B. Pitt, Kannon K. Shanmugam, Marcie R. Ziegler, Stanley E. Fisher, LEAD ATTORNEYS, Adam R. Tarosky, James H. Weingarten, John E. Joiner, John E. Schmidtlein, Paul B. Gaffney, PRO HAC VICE, Williams & Connolly LLP, Washington, DC; Dane H. Butswinkas, PRO HAC VICE, Williams & Connolly, Washington, DC; Jonathan Gimblett, PRO HAC VICE, Covington & Burling LLP, Washington, DC; Michael P. Kelly, PRO HAC VICE, McCarter & English LLP, Wilmington, DE; Timothy C. Hester, Covington & Burling, Washington, DC.

         For Value Drug Company, Burlington Drug Company Inc., Interested Parties: Bruce E. Gerstein, Garwin Gerstein & Fisher LLP, New York, NY; Elena Chan, PRO HAC VICE, Garwin Gerstein & Fisher LLP, New York, NY.

         For CaremarkPCS Health, LLC, Interested Party: Lawrence M. Kraus, LEAD ATTORNEY, Foley & Lardner LLP, Boston, MA.

         For McKesson Corporation, Interested Party: Nicholas S. Napolitan, LEAD ATTORNEY, PRO HAC VICE, Morrison & Foerster LLP, San Francisco, CA.

         For Express Scripts, Inc., Intervenor: Thomas E. Peisch, LEAD ATTORNEY, Conn, Kavanaugh, Rosenthal, Peisch & Ford, LLP, Boston, MA; Michael J. Rossi, Clark, Hunt, Ahern & Embry, Cambridge, MA.

         For Cardinal Health, Inc., Intervenor: Robert J. Tucker, LEAD ATTORNEY, PRO HAC VICE, BakerHostetler, Columbus, OH.


          ORDER

         WILLIAM G. YOUNG, DISTRICT JUDGE.

         I. INTRODUCTION

         This case presents a multidistrict, putative class action against AstraZeneca AB, Aktiebolaget Hassle, and Astrazeneca LP (collectively " AstraZeneca" ), Ranbaxy Pharmaceuticals, Inc., Ranbaxy Inc. and Ranbaxy Laboratories Ltd. (collectively, " Ranbaxy" ); Teva Pharmaceutical Industries, Ltd. and Teva Pharmaceuticals USA, Inc. (collectively, " Teva" ); and Dr. Reddy's Laboratories Ltd. and Dr. Reddy's Laboratories, Inc. (collectively, " Dr. Reddy's" ) (collectively, with Ranbaxy and Teva, the " Generic Defendants" ) (collectively, with AstraZeneca, the " Defendants" ) for alleged violations of state and federal antitrust laws involving AstraZeneca's heartburn medication, Nexium. Two plaintiff classes seek certification, the End-Payors and Direct Purchasers, and this order addresses class certification for the End-Payor class. The End-Payor class is comprised of individual consumers, third-party payors (" TPPs" ), union plan sponsors, and insurance companies that purchased or provided reimbursements for Nexium, and they move for class certification under Federal Rules of Civil Procedure (" Rule" ) 23(a), (b)(2) and (b)(3).

         II. DISCUSSION

         Upon detailed review of the parties' submissions and expert reports, the Court comes to the following conclusions regarding certification of the End-Payors class under Rules 23(b)(2) and (b)(3).

         A. Rule 23(b)(2)

         The End-Payor plaintiffs move for class certification under Federal Rule of Civil Procedure 23(b)(2) for the purpose of forming an " Injunctive Class." Rule 23(b)(2) provides for class certification where " the party opposing the class has acted or refused to act on grounds that apply generally to the class, so that final injunctive relief or corresponding declaratory relief is appropriate respecting the class as a whole." Fed.R.Civ.P. 23(b)(2).

         The Court is not persuaded that declaratory and injunctive relief will provide adequate remedy here. Formation of an Injunctive Class, for the purpose of enjoining the Defendants' reverse-payment agreements, is not appropriate because money damages are the " predominant relief" sought by the End-Payors. DeRosa v. Massachusetts Bay Commuter Rail Co., 694 F.Supp.2d 87, 95 (2010).

         Accordingly, the Court's motion for class certification under Rule 23(b)(2) is DENIED.

         B. Rule 23(b)(3)

         The End-Payor plaintiffs have sufficiently demonstrated that certification under Rules 23(a) and (b)(3) is appropriate in regards to their antitrust claims arising under the antitrust laws of Maine, Vermont, and Wisconsin.

         In regards to Rule 23(b)(3), the End-Payors have sufficiently demonstrated that questions of law or fact common to class members predominate over questions affecting only individual matters, and that class action is superior to other available methods of adjudication. The Court paid particular attention to the parties' arguments on the issue of common damages, in light of recent Supreme Court rulings in Wal-Mart and Comcast. See Wal-Mart Stores, Inc. v. Dukes, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011); Comcast Corp. v. Behrend, 133 S.Ct. 1426, 1432, 185 L.Ed.2d 515 (2013). While the Court is satisfied that the End-Payors were able to demonstrate common damages through their expert's damages model, the proffered class definition must be clarified to exclude certain payors that have not been shown to have suffered any injury from the Defendants' alleged anticompetitive behavior. Accordingly, pharmacy benefit managers (" PBMs" ) will be explicitly excluded from the class definition.

         C. Class Definition

         The Court certifies under Rule 23(b)(3), the following class of End-Payors with respect to their antitrust claims:

All persons or entities in the United States and its territories who purchased or paid for some or all of the purchase price for Nexium or its AB-rated generic equivalents in Arizona, California, Florida, Iowa, Kansas, Massachusetts, Maine, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Mexico, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, West Virginia, Wisconsin and the District of Columbia, in capsule form, for consumption by themselves, their families, or their members, employees, insureds, participants, or beneficiaries, during the period April 14, 2008 through and until the anticompetitive effects of Defendants' unlawful conduct cease. For purposes of the Class definition, persons or entities " purchased" Nexium or its generic equivalent if they paid or reimbursed some or all of the purchase price.

Pursuant to the Court's Motion to Dismiss Memorandum and Order, see ECF No.352, and its Order addressing the End-Payor Plaintiffs' Motion for Leave to Amend Consolidated Amended Class Action Complaint, see ECF No. 448, this class   definition applies specifically to the End-Payors' challenges against the reverse payment agreements made between AstraZeneca and Teva (" AstraZeneca/Teva Agreement" ), and AstraZeneca and Dr. Reddy's (" AstraZeneca/Dr.Reddy's Agreement" ). In regards to the agreement between AstraZeneca and Ranbaxy (" AstraZeneca/Ranbaxy Agreement" ), the End-Payor class is limited to the following states: Maine, Vermont, and Wisconsin.

         Excluded from the class are the following groups:

         a. Defendants and their officers, directors, management, employees, subsidiaries, or affiliates;

         b. All persons or entities who purchased Nexium or its AB-rated generic equivalent only directly from Defendants;

         c. All persons or entities who purchased Nexium or its AB-rated generic equivalent only for resale purposes;

         d. All government entities, except for government-funded employee benefit plans;

         e. Fully insured health plans (i.e., plans that purchased insurance from another third-party payor covering 100 percent of the plan's reimbursement obligations to its members);

         f. " Flat co-pay" " Cadillac Plan" consumers who made purchases only via fixed dollar co-payments that do not vary between Nexium and its AB-rated generic equivalent;

         g. Consumers who purchased or received Nexium or its AB-rated generic equivalent only through a Medicaid program;

         h. All pharmacy benefit managers without capitation agreements, regardless of whether they accepted AstraZeneca rebates for Nexium; and

         i. The judges in this case and any members of their immediate families.

         United Food and Commercial Workers Unions and Employers Midwest Health Benefits Fund, Allied Services Division Welfare Fund, Fraternal Order of Police Miami Lodge 20, Insurance Trust Fund, New York Hotel Trades Council & Hotel Association of New York City, Inc. Health Benefits Fund, Laborers International Union of North America Local 35 Health Care Fund, International Brotherhood of Electrical Workers Local 595 Health and Welfare Fund, Laborers International Union of North America Local 17 Health Care Fund, International Union of Machinists and Aerospace Workers District No. 15 Health Fund, Michigan Regional Council of Carpenters Employee Benefits Fund, and A.F. of L.-A.G.C. Building Trades Welfare Plan are the designated representatives of the End-Payor Class.

         The Court appoints the following as Co-Lead Counsel for the End-Payor Class: Steve Shadowen, Hilliard & Shadowen LLC; Kenneth A. Wexler, Wexler Wallace LLP; J. Douglas Richards, Cohen Milstein Sellers & Toll, PLLC; and Jayne A. Goldstein, Pomerantz Grossman Hufford Dahlstrom & Gross LLP.

         III. Notice

         In light of the March 3, 2014 trial date the Court has set for this matter, notice should be disseminated promptly to ensure that members of the Class have sufficient opportunity to exclude themselves from the Class, if they wish to do so, before trial commences. Accordingly, within 30 days of entry of this Order, Co-Lead Counsel shall file with the Court a proposed form of notice to be disseminated to members of each Class in accordance with Federal Rule of Civil Procedure 23(c)(2).

         IV. CONCLUSION

         The End Payor Plaintiffs' Motion for Class Certification [Doc. No. 272] is ALLOWED in part and DENIED in part. The motion is allowed under Rule 23(b)(3) with respect to the liability and damages class described above, and denied under Rule 23(b)(2) with respect to the injunctive class. The Court may alter or amend this order before final judgment.

         SO ORDERED.


Summaries of

In re Nexium (Esomeprazole) Antitrust Litig.

United States District Court, D. Massachusetts
Nov 14, 2013
296 F.R.D. 43 (D. Mass. 2013)
Case details for

In re Nexium (Esomeprazole) Antitrust Litig.

Case Details

Full title:IN RE NEXIUM (ESOMEPRAZOLE) ANTITRUST LITIGATION

Court:United States District Court, D. Massachusetts

Date published: Nov 14, 2013

Citations

296 F.R.D. 43 (D. Mass. 2013)

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