CASE SETTLED:
Bringing the suit closer to resolution, Judge William Young issued preliminary approval of a proposed settlement between GlaxoSmithKline and the class. Under the terms of the settlement, the defendants will pay damages of $75 million to those included in the class. Of the total settlement amount, $25 million will be allocated to consumers and $50 million will be used to pay the claims of insurers and other third-party payors.
In February of 2002, lawyers at Hagens Berman filed a class-action lawsuit against GlaxoSmithKline PLC (NYSE: GSK), SmithKline Beecham Corporation (NYSE: SBH), Beecham Group PLC, and SmithKline Beecham PLC, on behalf of consumers and third-party payors who purchased the drug Relafen or its generic alternatives.
The suit alleged that the companies who manufacture and sell Relafen unlawfully obtained a patent which allowed them to enforce a monopoly over Relafen and prevented competition by generic prescription drugs, causing consumers to pay inflated prices for the drug. The suit seeks monetary restitution for class members.
CASE TIMELINE
Bringing the suit closer to resolution, Judge William Young issued a preliminary approval of a proposed settlement between GlaxoSmithKline and the class. Under the terms of the settlement, the defendants will pay damages of $75 million to those included in the class. Of the total settlement amount, $25 million will be allocated to consumers and $50 million will be used to pay the claims of insurers and other third-party payors.
