From Casetext: Smarter Legal Research

In re Pharmaceutical Industry Average Wholesale Price Litigation

United States District Court, D. Massachusetts.
Jan 30, 2006
233 F.R.D. 229 (D. Mass. 2006)

Summary

defining Classes 2 and 3

Summary of this case from In re Pharm. Ind. Ave. Wholesale Price

Opinion


233 F.R.D. 229 (D.Mass. 2006) In re PHARMACEUTICAL INDUSTRY AVERAGE WHOLESALE PRICE LITIGATION. M.D.L. No. 1456. United States District Court, D. Massachusetts. January 30, 2006

CONSOLIDATED ORDER RE: MOTION FOR CLASS CERTIFICATION

SARIS, District Judge.

Pursuant to Fed.R.Civ.P. 23, plaintiffs have moved for an order certifying a class in this action. After considering the submissions of the parties and the record in this case, and after hearing on January 19, 2006, I order that plaintiffs' motion for class certification is ALLOWED IN PART and DENIED IN PART as to the claims asserted in the Third Amended Master Consolidated Class Action Complaint (" TAMCCAC" ). The Court relies on the reasons stated in court and in In re Pharm. Indus. Average Wholesale Price Litig., 230 F.R.D. 61 (D.Mass.2005). The classes are certified as follows:

I. CLASSES AND SUBCLASSES CERTIFIED

A. Class 1: Medicare Part B Co-Payment Class

1. Class Definition:

All natural persons nationwide who made, or who incurred an obligation enforceable at the time of judgment to make, a co-payment based on AWP for a Medicare Part B covered Subject Drug that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, or the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.). Excluded from the Class are those who made flat co-payments, who were reimbursed fully for any co-payments, or who have the right to be fully reimbursed; and the residents of the states of Alabama, Alaska, Georgia, Iowa, Kentucky, Louisiana, Mississippi, Montana, and Virginia (where consumer protection statutes do not permit class actions).

The Subject Drugs are identified in the Table of Subject Drugs found at the end of this Order. Defendants recently raised the issue that some drugs were improperly included. After conferring, the parties may move to strike drugs included in error.

2. The Court certifies four Subclasses corresponding to each of the defendant groups.

3. The Court certifies the following plaintiffs as representatives of these Subclasses pursuant to Fed.R.Civ.P. 23(b)(3). Leroy Townsend (AstraZeneca); David and Susan Ruth Aaronson (GlaxoSmithKline, the BMS Group); Joyce Howe, individually and on behalf of the Estate of Robert Howe (AstraZeneca); James and Teresa Shepley (the Johnson & Johnson Group); Larry Young, individually and on behalf of the Estate of Patricia Young (the Johnson & Johnson Group). The representative of a Subclass need only have paid for one of the Subject Drugs manufactured or marketed by a defendant group. I decline to certify a class of persons who made co-payments for drugs manufactured by the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation) because plaintiffs have not proposed any adequate and typical representatives of that proposed subclass.

4. The consumer protection act of each state shall apply to these Subclasses. Specifically, the Medicare Part B Co-payment Class is certified for claims under the following statutes: (a) Ariz.Rev.Stat. § 44-1522, et seq.; (b) Ark.Code § 4-88-101, et seq.; (c) Cal. Bus. & Prof.Code §§ 17200, et seq., 1770; (d) Colo.Rev.Stat. § 6-1-105, et seq.; (e) Conn. Gen.Stat. § 42-110b, et seq.; (f) 6 Del.Code § 2511, et seq.; (g) D.C.Code § 28-3901, et seq.; (h) Fla. Stat. § 501.201, et seq.; (i) Haw.Rev.Stat. § 480, et seq.; (j) Idaho Code § 48-601, et seq.; (k) 815 ILCS § 505/1, et seq.; (1) Ind.Code Ann. § 24-5-0.5.1, et seq.; (m) Kan. Stat. § 50-623, et seq.; (n) Md. Com. Law Code § 13-101, et seq.; ( o ) Mass. Gen. L. Ch. 93A, et seq.; (p) Mich. Stat. § 445.901, et seq.; (q) Minn.Stat. § 325F.67, et seq.; (r) Mo.Rev.Stat. § 407.010, et seq.; (s) Neb.Rev.Stat. § 59-1601, et seq.; (t) Nev.Rev.Stat. § 598.0903, et seq.; (u) N.H.Rev.Stat. § 358-A:1, et seq.; (v) N.J. Stat. Ann. § 56:8-1, et seq.; (w) N.M. Stat. Ann. § 57-12-1, et seq.; (x) N.Y. Gen. Bus. Law § 349, et seq.; (y) N.C. Gen.Stat. § 75-1.1, et seq.; (z) N.D. Cent.Code § 51-15-01, et seq.; (aa) Ohio Rev. Stat. § 1345.01, et seq.; (bb) Okla. Stat. tit. 15 § 751, et seq.; (cc) Or.Rev.Stat. § 646.605, et seq.; (dd) 73 Pa. Stat. § 201-1, et seq.; (ee) R.I. Gen. Laws. § 6-13.1-1, et seq.; (ff) S.C.Code Laws § 39-5-10, et seq.; (gg) S.D.Code Laws § 37-24-1, et seq.; (hh) Tenn.Code § 47-18- 101, et seq.; (ii) Tex. Bus. & Com.Code § 17.41, et seq.; (jj) Utah Code Ann. § 13-1 1-1, et seq.; (kk) Vt. Stat. Ann. tit. 9, § 245 1, et seq.; (ll) Wash. Rev.Code § 19.86.010, et seq.; (mm) W.Va.Code § 46A-6-101, et seq.; (nn) Wis. Stat. § 100.18, et seq.; and (oo) Wyo. Stat. § 40-12-100, et seq. Plaintiffs allege that they have complied with the notice provisions of all consumer protection acts requiring such notice.

5. This Class is certified pursuant to Fed.R.Civ.P. 23(b)(3).

B. Class 2: Third-Party Payor MediGap Supplemental Insurance Class

1. Class Definition:

All Third-Party Payors who made reimbursements for drugs purchased in Massachusetts, or who made reimbursements for drugs and have their principal place of business in Massachusetts, based on AWP for a Medicare Part B covered Subject Drug that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.), or the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation).

2. The Court certifies five Subclasses corresponding to each of the defendant groups.

3. The Court certifies plaintiffs Blue Cross/Blue Shield of Massachusetts and Sheet Metal Workers National Health Fund as the representatives for this Class.

4. The claims for this Class are certified under Mass. Gen. Laws ch. 93A.

5. This Class is certified pursuant to Fed.R.Civ.P. 23(b)(3).

C. Class 3: Consumer and Third-Party Payor Class for Medicare Part B Drugs Outside of the Medicare Context.

1. Class Definition:

All natural persons who made or who incurred an obligation enforceable at the time of judgment to make a payment for purchases in Massachusetts, all Third-Party Payors who made reimbursements based on contracts expressly using AWP as a pricing standard for purchases in Massachusetts, and all Third-Party Payors who made reimbursements based on contracts expressly using AWP as a pricing standard and have their principal place of business in Massachusetts, for a physician-administered Subject Drug that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.), or the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation). Included within this Class are natural persons who paid coinsurance ( i.e., co-payments proportional to the reimbursed amount) for a Subject Drug purchased in Massachusetts, where such coinsurance was based upon use of AWP as a pricing standard. Excluded from this Class are any payments or reimbursements for generic drugs that are based on MAC and not AWP.

2. The Court certifies five Subclasses corresponding to each of the defendant groups.

3. The Court certifies plaintiff Pipefitters Local 537 Trust Funds and Blue Cross/Blue Shield of Massachusetts as the representatives for this Class pursuant to Fed.R.Civ.P. 23(b)(2) and 23(b)(3). The Court also certifies Health Care For All as the representative for this Class pursuant to Fed R. Civ. P. 23(b)(2).

4. The claims for this Class are certified under Mass. Gen. Laws ch. 93A.

II. CLASSES NOT CERTIFIED

1. With respect to Class 2, plaintiffs have not submitted an adequate analysis of the feasibility of a nationwide class of Third-Party Payors. Therefore, the Court declines at this time to certify this Class under the consumer protection laws of states other than Massachusetts. However, this denial is without prejudice.

2. With respect to Class 3, the Court declines at this time to certify this Class under the consumer protection laws of states other than Massachusetts. However, this denial is without prejudice.

3. The Court declines to certify a class of persons or Third-Party Payors who made payments or reimbursements for self-administered drugs not appearing in the appended Table of Subject Drugs. This denial is with prejudice.

III. MISCELLANEOUS

1. The Class Period for Class 1 and Class 2 is January 1, 1991 to January 1, 2005. The class period for Class 3 is January 1, 1991 to the present.

2. Excluded from these Classes are: any subsidiaries or affiliates of defendants; the officers and directors of defendants during the Class Period; members of defendants' immediate families; any person, firm, trust, corporation, officer, director, or any individual or entity in which any defendant has a controlling interest or which is related to, or affiliated with, any defendant; the legal representatives, agents, affiliates, heirs, successors-in-interest, or assigns of any such excluded parties and governmental entities.

3. Pursuant to Fed.R.Civ.P. 23(g), the Court appoints the following firms as Co-Lead Counsel: Hagens Berman Sobol Shapiro LLP; Spector Roseman & Kodroff, P.C.; Hoffman & Edelson; The Wexler Firm; and Kline & Specter.

4. The " Together Rx" claims are not certified because they are dismissed without prejudice by the filing of the TAMCCAC.

5. The Court retains the discretion under Rule 23 to modify this Order. Modifications may include adding new class representatives, striking existing class representatives, and striking drugs from the Table of Subject Drugs.

6. The Court declines to certify issues for an interlocutory appeal pursuant to 28 U.S.C. § 1292(b) or to recommend appeal pursuant to Fed.R.Civ.P. 23(f).

TABLE OF SUBJECT DRUGS

AstraZeneca

NDC

Description

00186198804

PULMICORT RESPULES 60 mls 2 X 30.25mg/2mL

00186198904

PULMICORT RESPULES 60 mls 2x30 .5mg/2mL

00310096036

Zoladex 3.6mg 1x1EA Depot

00310096130

Zoladex 10.8mg 1x1EA Depot

00310095130

Zoladex 10.8mg 1x1EA Depot

00310095036

Zoladex 3.6mg 1x1EA Depot

BMS Group

NDC

Description

00015301026

BLENOXANE INJ 15 UNIT VHA

00015301020

BLENOXANE INJ 15 UNIT VL

00015306326

BLENOXANE INJ 30 UNIT VHA

00015306301

BLENOXANE INJ 30 UNIT VL

00590032435

COUMADIN INJ 5MG VIAL

00015053910

CYTOXAN 100MG LYOPH W/CYT

00015054812

CYTOXAN 1G 6X50ML VHA+

00015054810

CYTOXAN 1GM LYOPH W/CYTOG

00015054610

CYTOXAN 200MG LYOPH W/CYT

00015054912

CYTOXAN 2G 6X100ML VHA+

00015054910

CYTOXAN 2GM LYOPH W/CYTOG

00015054710

CYTOXAN 500MG LYOPH W/CYT

00015050001

CYTOXAN FOR INJ 100 MG

00015050041

CYTOXAN INJ 100MG

00015050641

CYTOXAN INJ 1X2GM VIAL

00015050241

CYTOXAN INJ 1X500MG VIAL

00015050141

CYTOXAN INJ 200MG

00015054712

CYTOXAN LYO 500MG VL VHA

00015054741

CYTOXAN LYOPH 500MG

00015053941

CYTOXAN LYOPHILIZED 100MG

00015054841

CYTOXAN LYOPHILIZED 1GM

00015054641

CYTOXAN LYOPHILIZED 200MG

00015054941

CYTOXAN LYOPHILIZED 2GM

00015050541

CYTOXAN PINJ 1X1G VIAL

00015050303

CYTOXAN TABLETS 50 MG

00015050302

CYTOXAN TABLETS 50MG

00015050401

CYTOXAN TABS 25MG

00015050301

CYTOXAN TABS 50MG

00015050348

CYTOXAN TABS 50MG

00015340420

ETOPOPHOS 100MG VIAL

00015321429

PARAPLATIN 10X15ML VHA+

00015321529

PARAPLATIN 10X45ML VHA+

00015321329

PARAPLATIN 10X5ML VHA+

00015321410

PARAPLATIN 150MG LYOPH CY

00015321430

PARAPLATIN 1X150MG LYO VL

00015321530

PARAPLATIN 1X450MG LYO VL

00015321510

PARAPLATIN 450MG VL W/CYT

00015321330

PARAPLATIN 50MG LYOPHILIZ

00015321310

PARAPLATIN 50MG W/CYTO

00015335322

RUBEX 100 MG LYOPHILIZED

00015335324

RUBEX 100MG IMMUNEX LABEL

00015335124

RUBEX 10MG IMMUNEX LABEL

00015335122

RUBEX 10MG LYOPHILIZED

00015335224

RUBEX 50MG IMMUNEX LABEL

00015335222

RUBEX 50MG LYOPHILIZED

00015347630

TAXOL 100MG INJ MULTIDOSE

00015347627

TAXOL 100MG SEM-SYN VIAL

00015347620

TAXOL 100MG/16.7ML VHA+ L

00015347911

TAXOL 300MG/50ML VIAL

00015345620

TAXOL 30MG CONC FOR INJ

00015347530

TAXOL 30MG INJ MULTIDOSE

00015347527

TAXOL 30MG SEM-SYN VIAL

00015347520

TAXOL 30MG/5ML VHA+ LABEL

00015309510

VEPESID 100MG VIAL W/CYTO

00015309530

VEPESID 100MG VL W/O CYTO

00015306224

VEPESID 1G 50ML VIAL VHA+

00015306220

VEPESID 1GM/50ML

00015306120

VEPESID 500MG

00015306124

VEPESID 500MG 25ML VL VHA

00015309145

VEPESID 50MG CAPSULES

00015309520

VEPESID INJ 100MG/5ML

00015308420

VEPESID INJ 150MG/7.5ML

SmithKline Beecham Corporation d/b/a GlaxoSmithKline

NDC

Description

00173013093

ALKERAN I.V. INJ 50 MG

00173004535

ALKERAN TAB 2MG 50S

00173044902

IMITREX INJ 0.5ML 12MG/ML 5S VIALS

00173044901

IMITREX INJ 12MG/ML 0.5ML 2S PFLD SRNG

00173044903

IMITREX INJ 12MG/ML 0.5ML2S KIT,SELFDOSE

00173047900

IMITREX INJ 12MG/ML STAT DOSE KIT

00173047800

IMITREX INJ 12MG/ML STAT DOSE RFL 2'S

00173403291

IMITREX SELFDOSE SYSTEM SELFDOSE UNIT/C

00173408367

ITMD ZOVIRAX STERILE POWDER 1000MG (BWX9

00029415105

KYTRIL 1 MG TABS 20'S SUP

00029415139

KYTRIL 1MG TABS 2'S

00029415201

KYTRIL 1MG/ML INJECTION 4ML VIAL

00029414975

KYTRIL INJ SGL DOSE VIAL 1MG/ML VHA

00029414901

KYTRIL INJ SINGLE DOSE VIAL 1MG/ML

00173026010

LANOXIN INJ 0.5MG -PART 1.00

00173026035

LANOXIN INJ 0.5MG 2ML 50S

00173026210

LANOXIN INJ PEDIATRIC 0.1MG/ML

00173026015

LANOXIN INJECTION -PART 1.00

00173026055

LANOXIN INJECTION -PART 1.00

00173071325

MYLERAN TAB 2MG 25S

00173065601

NAVELBINE INJ 10MG 1ML

00173065644

NAVELBINE INJ 50MG 5ML

00173010793

RETROVIR IV INF 10MG/ML 20ML 10

00173041900

VENTOLIN NEB SOL INH 0.083% 3ML 25S

00173041901

VENTOLIN NEB SOL INH 0.083% 3ML 5S S

00173038501

VENTOLIN SOL INH 0.5% 5MG/ML 10ML

00173038558

VENTOLIN SOL INH 0.5% 5MG/ML 20ML

00173044200

ZOFRAN INJ 2MG/ML 20ML

00173044202

ZOFRAN INJ 2MG/ML 2ML 5S

00173046100

ZOFRAN INJ PRMXD 32MG/50ML

00173046200

ZOFRAN INJ PRMXD 4MG/50ML

00173056900

ZOFRAN ODT 4MG 5X2 30S

00173057004

ZOFRAN ODT 8MG 5X2 10'S

00173057000

ZOFRAN ODT 8MG 5X2 30S

00173048900

ZOFRAN ORAL SOL 4MG/5ML 50ML

00173068000

ZOFRAN TAB 24MG 1S

00173044601

ZOFRAN TAB 4MG 100S

00173044602

ZOFRAN TAB 4MG 100S UD

00173044600

ZOFRAN TAB 4MG 30S

00173044604

ZOFRAN TAB 4MG 3S

00173044701

ZOFRAN TAB 8MG 100S

00173044702

ZOFRAN TAB 8MG 100S UD

00173044700

ZOFRAN TAB 8MG 30S

00173044704

ZOFRAN TAB 8MG 3S

00173095201

ZOVIRAX FOR INJECTION 1000MG 20ML 10S ©

00173099501

ZOVIRAX FOR INJECTION 500MG 10ML 10S (C#

Johnson & Johnson Group

NDC

Description

57894003001

C168J REMICADE 1PCK

59676031201

PROCRIT 10,000 U/ML

59676031002

PROCRIT 10000 U

59676031001

PROCRIT 10000 U/ML

00062740103

PROCRIT 10000U/ML AMG

59676032001

PROCRIT 20,000 U/ML

59676030202

PROCRIT 2000 U/

59676030201

PROCRIT 2000 U/ML 6

00062740201

PROCRIT 2000U/ML AMG

59676030302

PROCRIT 3000 U/

59676030301

PROCRIT 3000 U/ML 6

00062740503

PROCRIT 3000 U/ML INST

00062740501

PROCRIT 3000U/ML AMG

59676030402

PROCRIT 4000 U/

59676030401

PROCRIT 4000 U/ML 6

00062740004

PROCRIT 4000 U/ML INST

59676034001

PROCRIT 40000 U/ML

00062740003

PROCRIT 4000U/ML AMG

00062542307

PWRWNG PERMANEN

Schering Plough Group

NDC

Description

59930151504

ALBUTEROL INHALATION SOLUTION

59930164702

ALBUTEROL INHALATION SOLUTION

59930150006

ALBUTEROL SULFATE INHAL. SOL.

59930150008

ALBUTEROL SULFATE INHAL. SOL.

59930151701

ALBUTEROL SULFATE SOLUTION

59930151702

ALBUTEROL SULFATE SOLUTION

59930155020

ALBUTEROL SULFATE SOLUTION

00085113601

INTEGRILIN

00085117701

INTEGRILIN

00085117702

INTEGRILIN

00085123501

INTRON A FOR INJ MULTIDOSE PEN

00085124201

INTRON A FOR INJ MULTIDOSE PEN

00085125401

INTRON A FOR INJ MULTIDOSE PEN

00085116801

INTRON A INJ 18MIU HSA FREE

00085113301

INTRON A INJ 25MIU HSA FREE

00085118401

INTRON A INJ 3MIU HSA FREE

00085118402

INTRON A INJ 3MIU HSA FREE

00085119101

INTRON A INJ 5MIU HSA FREE

00085119102

INTRON A INJ 5MIU HSA FREE

00085117901

INTRON A INJ PAK10MIU HSA FREE

00085117902

INTRON A INJ PAK10MIU HSA FREE

00085057102

INTRON A INJECTABLE 10MILLN IU

00085057106

INTRON A INJECTABLE 10MILLN IU

00085111001

INTRON A INJECTABLE 18MILLN IU

00085028502

INTRON A INJECTABLE 25MILLN IU

00085064703

INTRON A INJECTABLE 3MILLN IU

00085064704

INTRON A INJECTABLE 3MILLN IU

00085064705

INTRON A INJECTABLE 3MILLN IU

00085012002

INTRON A INJECTABLE 5 MILLN IU

00085012003

INTRON A INJECTABLE 5 MILLN IU

00085012004

INTRON A INJECTABLE 5 MILLN IU

00085012005

INTRON A INJECTABLE 5 MILLN IU

00085053901

INTRON A INJECTABLE 50MILLN IU

00085068901

INTRON A INJECTION 18 MIU

00085092301

INTRON A SOL FOR INJ 10 MILLI

00085076901

INTRON A SOL FOR INJ. 25MILLN

00085095301

INTRON A SOLUTION 18MIU 3ML

59930160001

PERPHENAZINE

59930160002

PERPHENAZINE

59930161001

PERPHENAZINE 16MG

59930160501

PERPHENAZINE 8MG

59930160502

PERPHENAZINE 8MG

59930160301

PERPHENAZINE TABLETS

59930160302

PERPHENAZINE TABLETS

00085133601

PROVENTIL INHALATION SOLUTION

00085020901

PROVENTIL SOLUTION .083MG/ML

00085180601

PROVENTIL SOLUTION .083MG/ML

00085020802

PROVENTIL SOLUTION 5MG/ML

00085020852

PROVENTIL SOLUTION 5MG/ML

00085125901

TEMODAR 100MG

00085125902

TEMODAR 100MG

00085124401

TEMODAR 20MG

00085124402

TEMODAR 20MG

00085125201

TEMODAR 250MG

00085125202

TEMODAR 250MG

00085124801

TEMODAR 5MG

00085124802

TEMODAR 5MG


Summaries of

In re Pharmaceutical Industry Average Wholesale Price Litigation

United States District Court, D. Massachusetts.
Jan 30, 2006
233 F.R.D. 229 (D. Mass. 2006)

defining Classes 2 and 3

Summary of this case from In re Pharm. Ind. Ave. Wholesale Price

certifying four subclasses of end-payors, where each subclass brought claims against a different defendant for violation of consumer protection laws of 41 states

Summary of this case from In re Polyurethane Foam Antitrust Litig.

certifying class in antitrust case under West Virginia statute

Summary of this case from In re TFT-LCD (Flat Panel) Antitrust Litigation
Case details for

In re Pharmaceutical Industry Average Wholesale Price Litigation

Case Details

Full title:In re PHARMACEUTICAL INDUSTRY AVERAGE WHOLESALE PRICE LITIGATION.

Court:United States District Court, D. Massachusetts.

Date published: Jan 30, 2006

Citations

233 F.R.D. 229 (D. Mass. 2006)

Citing Cases

In re Pharmaceutical Industry Average Wholesale Price Litigation

In January 2006, this Court certified a Third-Party Payor MediGap Supplemental Insurance Class and a Consumer…

In re Pharm. Ind. Average

In January 2006, the district court then certified three classes: (1) a nationwide class of Medicare…