Settlement Reached in Drug Price-Fixing Case

A federal judge has given preliminary approval to a $100-million settlement by generic drug maker Mylan Laboratories Inc. and three other companies accused of fixing prices of anti-anxiety drugs. The settlement, approved Friday by U.S. District Judge Thomas F. Hogan in Washington, covers consumers and government agencies in all 50 states and the District of Columbia. Thirty-two states and the District of Columbia filed lawsuits in 1998, accusing Mylan and the other companies of conspiring to block the sale of the active ingredients for two anti-anxiety drugs, lorazepam (the generic version of Ativan) and clorazepate (the generic drug for Tranxene) to all companies but Mylan. Because of strong demand, Pittsburgh-based Mylan was able to raise prices of the drugs by more than 2,000%. The drugs are widely used to treat anxiety and hypertension in the elderly. Mylan did not admit wrongdoing. The other companies in the settlement are Cambrex Corp. of East Rutherford, N.J.; its subsidiary Profarmaco of Milan, Italy; and Gyma Laboratories of America Inc. of Westbury, N.Y. Consumers who bought the drugs from Jan. 1, 1998, through 1999 may be entitled to a refund. The claims period runs June 1 to Sept. 29. A hearing on final approval of the settlement will be held Nov. 29. Claim forms can be obtained at https://www.agsettlement.com.