Purchasers of Allerganp-’s Namenda asked a federal decide Tuesday to approve a $750 million settlement of allegations that the drugmaker conspired to keep generic versions of the Alzheimer’s medicine off the market.
Lawyers for the plaintiffs stated the preliminary settlement, which requires a judge’s approval, would be the biggest amount paid by one defendant to resolve a class-action introduced by “direct purchasers” under the federal Hatch-Waxman antitrust regulation, which encourages the manufacture of generic drugs.
The purchasers accused Allergan’s Forest Laboratories unit of paying a competitor to delay selling generic Namenda IR and inspiring them to switch to an extended-release medicine, Namenda XR, earlier than generic Namenda IR became available.
Allergan rejected wrongdoing in agreeing to the settlement, which its lawyers inked on December 20.
The Dublin, Ireland-based firm previously took a related $750 million pre-tax charge in its third-quarter outcomes.
Forest was bought in June 2014 by Actavis, which modified its brand to Allergan in June 2015.
Namenda treats moderate to severe dementia in individuals with Alzheimer’s disease. Sales of generic Namenda IR started in July 2015 and generic Namenda XR in March 2018, Allergan has stated.
The settlement covers these in the US who bought Namenda IR, Namenda XR, or generic Namenda IR directly from Forest, Actavis, or Allergan from June 2012 to September 2015.
The purchasers’ lawyers might seek authorized fees of as much as one-third of the settlement fund, including interest; however, a total of expenses and other sums, court papers show.