Relafen Settlement

DEFENDANT NAME: GlaxoSmithKline PLC
STOCK SYMBOL: NYSE: GSK
CASE NUMBER: 01-CV-12239
CASE NAME:
COURT: U.S. District Court for the District of Massachusetts
PRACTICE AREA: Pharmaceutical Fraud
STATUS: Settled
CLASS PERIOD:
LEAD PLAINTIFF DEADLINE:
DATE FILED: 12/01/04
COURT LOCATION:
KEY ATTORNEYS:
Thomas M. Sobol
CONTACT:

Case Settled

Bringing the suit closer to resolution, Judge William Young issued a preliminary approval of a proposed settlement between GlaxoSmithKline and the class. Under the terms of the settlement, the defendants will pay damages of $75 million to those included in the class. Of the total settlement amount, $25 million will be allocated to consumers and $50 million will be used to pay the claims of insurers and other third-party payors.

In February of 2002, lawyers at Hagens Berman filed a class-action lawsuit against GlaxoSmithKline PLC (NYSE: GSK), SmithKline Beecham Corporation (NYSE: SBH), Beecham Group PLC, and SmithKline Beecham PLC, on behalf of consumers and third-party payors who purchased the drug Relafen or its generic alternatives.

The suit alleged that the companies who manufacture and sell Relafen unlawfully obtained a patent which allowed them to enforce a monopoly over Relafen and prevented competition by generic prescription drugs, causing consumers to pay inflated prices for the drug. The suit seeks monetary restitution for class members.


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03/14/06: Case Settled

Bringing the suit closer to resolution, Judge William Young issued a preliminary approval of a proposed settlement between GlaxoSmithKline and the class. Under the terms of the settlement, the defendants will pay damages of $75 million to those included in the class. Of the total settlement amount, $25 million will be allocated to consumers and $50 million will be used to pay the claims of insurers and other third-party payors.

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