Court: U.S. District Court
Location: Massachusetts
Ticker Symbol: SRE
Settlement Reached
Hagens Berman Sobol Shapiro announced a $24 million settlement today in Boston that concludes the class-action lawsuit against Serono, Inc., a global biotechnology company.
The $24 million settlement resolves claims that Serono wrongfully encouraged doctors to prescribe the drug Serostim to AIDS patients, whom it was unnecessary. The original suit, filed in 2005, charged Serono with promoting the use of an unapproved medical device that improperly diagnosed people as having AIDS wasting; providing doctors with travel stipends in exchange for their agreement to prescribe Serostim and marketing the drug for uses not approved by the FDA.
The suit was filed on behalf of Government Employees Hospital Assocation, District 37 Health and Security Plan Trust and consumers.
Hagens Berman Sobol Shapiro filed an amended complaint in the class-action lawsuit against Serono, Inc., a global biotechnology company, on behalf of Government Employees Hospital Association (GEHA), District Council 37 Health and Security Plan Trust, and consumers. The amended complaint claims that Serono engaged in deceptive and illegal marketing, sales, and promotional activities of its drug Serostim and other pharmaceutical products.
According to the complaint, in 1996 Serono received approval for Serostim from the U.S. Food and Drug Administration (FDA) for the sole purpose of treating AIDS wasting - which was the leading cause of death among AIDS patients at the time. During the same time, other pharmaceutical companies released newly approved protease inhibitors which - when used with a combination of other drugs known as an AIDS cocktail - dramatically slowed the replication of the HIV virus and conversion to AIDS. As the number of patients with AIDS reduced so did the demand for Serostim treatment.
The complaint claims that in order to increase Serostim sales, Serono embarked on a campaign of criminal deceit, manipulation, kickbacks, and fraud, resulting in prescriptions for Serostim that were not medically necessary or beneficial.
The suit claims that Serono used unapproved and unproven tests to form the basis for Serostim prescription. The complaint also claims that Serono offered lavish trips, gifts, and kickbacks to physicians who wrote a minimum number of Serostim prescriptions.
According to the complaint, on December 15, 2005, Serono pleaded guilty to federal criminal conspiracy charges and paid nearly $704 million in fines and restitution to the federal government. This suit seeks to represent consumers and third-party payors who were injured by the deceptive acts of Serono, but not included in the federal government's case.
If you have been prescribed Serostim or another Serono drug included in this case and paid all or a portion of the cost, you may be eligible to be part of the class.
For more information or to be included in the suit, please email Hagens Berman Sobol Shapiro at info@hbsslaw.com.
For additinal information about this case and to review a list of included drugs, please visit the FAQ.
Key Attorneys
Mr. Berman helped to found the firm in 1993, and is the managing partner. He has served as lead or co-le... link >>
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