First DataBank Reaches Settlement
Hagens Berman Sobol Shapiro announced today that a settlement was reached with First Data Bank (FDB), publisher of the Average Wholesale Price list for pharmaceutical products. FDB was alleged to have improperly set the AWP for 95% of all retail drugs. The AWP list is used by health plans and state Medicaid programs in determining how much to pay pharmacies for certain drugs.
As part of the settlement, FDB will adjust the Wholesale Acquisition Cost to AWP mark-up on 95% of pharmaceuticals sold in the United States. FDB's adjusted mark-up on pharmaceutical products shall not exceed 1.20, resulting in a 4% price reduction in all retail drugs.
U.S. drug savings are estimated to reach $4 billion in 2007 alone. Of that, $3.3 billion will go to third party payers, while approximately $400 million will go to the uninsured.
FDB has also agreed to stop publishing the AWP list for pharmaceutical products after a two year notice period.
Click here to read more about the settlement and for more information about Hagens Berman's AWP litigation.
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Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in 10 cities. The firm has been named to the National Law Journal’s Plaintiffs’ Hot List eight times. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.