Drug Makers Settle Suit Over Pricing

Nineteen drug makers have agreed to pay more than $176 million to settle a class-action lawsuit alleging they gouged the public by overcharging for medicines sold through independent pharmacies. As part of the deal, the companies will furnish $148 million worth of brand-name drugs to 300 nonprofit California medical clinics that provide drugs to the poor. The manufacturers will pay $1.6 million to administer the three-year program. Under the settlement, given preliminary court approval Thursday, the companies could pay as much as $27 million in fees to attorneys for the plaintiffs. Merck & Co. would pay the most, more than $19 million, while Carter-Wallace Inc. would pay the least, at $705,000. Nine companies named in the suit did not join in the settlement. “We view this to be an exceptional result,” said plaintiffs’ attorney Bill Bernstein. Merck spokesman John Doorley said the company settled the California case “rather than risk an inaccurate verdict. We price our products competitively and fairly in response to market pressure and we never have been involved in any price conspiracy.”