Case Details

Year Initiated/Committed

2001

Year Resolved

2003

Settlement Amount

$93 million(2001); $1.1 million (2008)

Court

U.S. District Court for the Southen District of New York

Docket Number

01CV11401; MDL 1413

Lead State

MD, NY, TX

Participating States

AK, AL, AR, AZ, CO, CT, DC, DE, FL, IA, ID, IL, KS, KY, LA, MA, MD, ME, MI, MS, MT, NC, ND, NE, NM, NV, NY, OH, OK, OR, PA, RI, SC, TX, UT, VT, WA, WI, WV

Defendant(s)

Bristol Myers Squibb Co.; Danbury Pharmacal, Inc.; Watson Pharma Inc.

Case Description

In December, 2001, Plaintiff States filed an action against Bristol-Myers Squibb Co. (BMS). The Plaintiff States sought civil penalties, damages and injunctive relief from BMS for violating federal and state antitrust laws, consumer protection laws and unfair competition laws. The complaint alleged that in 1994, BMS entered into an illegal agreement with Schein Pharmaceutical, Inc. (now Watson Pharma, Inc. and Danbury Pharmacal, Inc.). In the agreement, BMS paid Schein to forego producing generic buspirone hydrochloride. As a result, BMS was able to continue and maintain its monopoly on its brand name Buspar. In addition, the complaint alleged that BMS also knowingly filed false information with the U.S. Patent and Trademark Office, allowing BMS to prevent other generic competitors from producing buspirone hydrochloride The parties reached a settlement in 2003. BMS agreed to refrain from asserting patent #3,976,365 in connection with buspirone and any other patent that would unreasonably delay generic entry. BMS also agreed to reimburse consumers and state and local agencies who purchased Buspar between Jan. 1, 1998, and December 31, 2002 for overcharges paid. The total settlement sum was $93 million. The FTC joined the States in obtaining the injunctive portion of the settlement. In 2008, plaintiff states sued BMS for failing to report accurately to the states, pursuant to the settlement, a patent agreement entered into with Apotex involving the drug Plavix. The company pleaded guilty to lying to the FTC and the states recovered $1.1 million in fines.