Court: United States District Court for the District of New Jersey
Labor-Management Healthcare Fund v. Teva Pharmaceuticals Industries Ltd., et al., No. 22-cv-01345 (D.N.J.); Lead Case: 2:22-cv-01232
WBE and co-counsel filed this class action lawsuit on behalf of third-party payors against Teva Pharmaceuticals, accusing the company of anticompetitive practices aimed at preventing generic competition for its multiple sclerosis drug, Copaxone. The complaint, lodged in the U.S. District Court for the District of New Jersey, alleges that Teva employed a multifaceted scheme to maintain its monopoly on Copaxone and thwart the entry of lower-priced generic versions, thereby inflating healthcare costs for third-party payors, such as union health and welfare funds that provide prescription drug benefits for their employees.
Copaxone, an injectable drug used to treat relapsing forms of multiple sclerosis (MS), was introduced by Teva in 1997. It became one of the company’s most lucrative drugs, generating over $30 billion in U.S. sales. Over the years, Teva increased Copaxone’s price from $10,000 per year in 1997 to nearly $70,000 annually by 2020.
Plaintiffs allege that Teva engaged in a series of anticompetitive actions to protect Copaxone’s market dominance, including spreading misinformation about generic versions of Copaxone, transitioning patients to a newer version of Copaxone to avoid competition from generic drugmakers, and signing exclusionary contracts with pharmacy benefit managers and specialty pharmacies to ensure that only branded Copaxone would be dispensed even when generic versions were available.
Plaintiffs seek damages, including treble damages under various state antitrust and consumer protection laws, and injunctive relief to prevent Teva from continuing its anticompetitive practices. They also request that the court impose monetary penalties to deter similar future conduct by the defendants.
On Thursday, August 11, 2022, United States Magistrate Judge Jessica S. Allen signed an order appointing WBE attorneys Kenneth A. Wexler and Justin N. Boley as interim co-lead counsel. The parties are currently engaged in discovery.