Multi district lawsuit (mdl) against drug giant merck
Drug Manufacturer Merck to Pay $60 Million in “Pay for Delay” Case
June 12, 2017
Pharmaceutical giant Merck and Upsher-Smith Laboratories have agreed to pay more than $60 million in a Multi-District Litigation (MDL) in which the drug manufacturers were accused of conspiring to keep competitors’ products from pharmacy shelves.
The MDL case concerns Merck’s potassium supplement K-Dur, for which generic alternatives exist. The courts have found that Merck and Upsher-Smith spent millions of dollars and many years attempting to keep those generics from entering the marketplace. Plaintiffs in the case included drug retailers Walgreens, Rite Aid, and CVS, which alleged that Merck had used a “reverse payment agreement” to keep lower-cost generic off of their shelves. The result was an artificially inflated price of K-Dur.
The court ruled that Merck’s actions constituted a violation of the Sherman Antitrust Act.
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