EpiPen – Consumer Class Action Against Pharmacy Benefit Managers
In Re EpiPen ERISA Litigation
United States District Court, District of Minnesota
Case No. 17-1884
Plaintiffs filed their Consolidated Class Action Complaint on April 2, 2018. A copy of this complaint is available in the Case Documents section below. On June 1, 2018, Defendants filed their Motions to Dismiss. On October 26, 2018, after hearing argument, the Court issued an Order largely denying Defendants’ Motions to Dismiss. On November 20, 2018, Keller Rohrback Partner Gretchen Obrist was appointed Interim Lead Class Counsel. The case will now proceed to discovery.
The Plaintiffs filed this consolidated complaint against the top four Pharmacy Benefit Managers (“PBMs”) that serve as gatekeepers between drug manufacturers on the one hand, and health plans and patients on the other. PBMs use their market position to negotiate rebates, fees, and other concessions from Mylan, the seller of the EpiPen, which the PBMs claim reduce the cost of pharmaceutical products to health plans and consumers.
However, Plaintiffs’ complaint alleges a very different reality—instead of working to reduce costs, the PBM Defendants engaged in a pricing scheme with Mylan that induced and enabled Mylan to unfairly and unlawfully inflate the prices of the EpiPen in exchange for providing the EpiPen favorable placement on the prescription drug benefit formularies that the PBMs manage and control. This scheme enriched the PBMs, who keep much of the money Mylan pays them. And it is at the expense of health plan participants and beneficiaries in the proposed Class, who pay inflated prices as a result of the scheme.
Plaintiffs’ claims are brought under the Employee Retirement Income Security Act of 1974 (“ERISA”), which imposes strict fiduciary duties on entities that administer and manage employer-sponsored health plan benefits. Plaintiffs allege that the PBMs breached these duties in facilitating profits for themselves to the detriment of participants and beneficiaries who have vastly overpaid for EpiPens.
To learn more about PBMs and their role in drug prices click HERE.