Hagens Berman: Eleven Defendants Settle in Average Wholesale Price ...( Two major defendants - AstraZeneca ...),Health

Two major defendants - AstraZeneca and Bristol-Myers Squib - not part of

settlement

BOSTON, March 7 /PRNewswire/ -- Today eleven major pharmaceutical companies, including Abbott Laboratories (NYSE: ABT) and Watson Pharmaceuticals (NYSE: WPI), agreed to a $125 million nationwide settlement in the average wholesale price (AWP) litigation filed in 2002 by consumers and insurance companies, which claimed the defendants intentionally inflated reports of the average wholesale prices on certain prescription drugs.

The published AWP is used to set the price that consumers making Medicare Part B co-payments and Medicare pay for the drug, as well as insurance companies and other third-party payors. The lawsuit contends that consumers and third-party payors paid more than they should because of the drug companies' false AWP reporting.

Seattle-based Hagens Berman, co-lead counsel in the case, announced today's settlement which includes branded and generic drugs used primarily in the treatment of cancer, HIV and other serious illnesses. Under the terms of the settlement 82.5 percent of the settlement fund is designated for third-party payors' claims and the remaining 17.5 percent is designated for consumer claims.

"This is a very good settlement for third-party payors and consumers," said Steve Berman, Hagens Berman managing partner. "The battle isn't over yet, but every settlement signifies that our claims are just and these drug companies have many years of damage to rep
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