Health Insurers’ Motion to Treble Damages Against Pharmaceutical Companies in Antitrust Case is Granted

On June 1, 2005, after a jury trial lasting over three weeks, a jury found for Blue Cross Blue Shield of Massachusetts (“BCBS-MA”), Blue Cross Blue Shield of Minnesota (“BCBS-MN”), Federated Mutual Insurance Company (“Federated”), and Health Care Service Corporation (“HCSC”) (collectively “Plaintiffs”) against Mylan Laboratories Inc. and Mylan Pharmaceuticals Inc., Cambrex Corporation, and Gyma Laboratories (“Defendants”) on state law claims –  agreement in unreasonable restraint of trade; conspiracy in unreasonable restraint of trade; monopolization; and, attempted monopolization – in the Lorazepam active pharmaceutical ingredient (“API”) market, Lorazepam tablet market and in the Clorazepate API and tablet markets.  The jury awarded BCBS-MA $8,430,887, BCBS-MN $1,756,096, Federated $410,878.00, and HCSC $1,448,437.00 in damages.

Subsequently, Plaintiffs – third-party payors for the prescription drugs at issue – moved the United States District Court for the District of Columbia to treble damages.  In its decision dated January 24, 2008, the Court found that Defendants acted willfully and awarded Plaintiffs treble damages.  Click here to read the court’s decision.  The Court trebled damages for BCBS-MA under Massachusetts state law, BCBS-MN and Federated under Minnesota state law, and HCSC under Illinois state law.

On January 25, 2008, PRNewswire-FirstCall reported that Mylan intended to appeal the decision against Mylan and its co-defendants Cambrex Corp. and Gyma Laboratories “in the last of the pending Lorazepam and Clorazepate antitrust cases. Mylan intends to immediately appeal the decision and will continue to vigorously defend itself in the litigation.”