Case Details

Year Initiated/Committed

1990

Year Resolved

1992

Settlement Amount

$20 million ($2 million in costs)

Court

U.S. District court for the Northern District of Illinois

Docket Number

91-C-2431

Lead State

CA, CT, MA, MN, NJ, NY, VA, WA

Participating States

AL, AZ, CA, CO, CT, DC, DE, FL, IA, ID, IL, KS, MA, MD, ME, MN, NC, NH, NJ, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, WA, WI, WV

Defendant(s)

Sandoz Pharmaceuticals Corporation; Caremark, Inc.

Case Description

Plaintiff States’ complaint alleged that Sandoz unlawfully required purchasers of its schizophrenia drug, Clozapine, to also purchase distribution and patient monitoring services from Caremark. The Plaintiff States further alleged that this illegal tying arrangement led to higher prices of Clozapine treatment and prevented medical service providers from offering related blood tests and necessary patient monitoring. Sandoz agreed to cease and desist such practices for 10 years in addition to a payment of $16 million to be distributed directly to eligible Clozapine purchasers, patients on social security disability income and state mental health agencies. The Plaintiff States received $2,080,000 for costs and attorneys fees incurred throughout the litigation.