Allergan, the company that makes Restasis eye drops, has agreed to pay $30 million in a class action settlement. If you or someone you know used Restasis between 2015 and 2021, this could be important news for you. Let’s break down the details and see if you might be eligible to claim part of the settlement.
About Restasis
Restasis, a well-known prescription eye drop, is primarily used to treat chronic dry eye syndrome. Manufactured by Allergan, the product has been at the center of a significant class action lawsuit that has stirred up the medical industry.
This treatment has been a subject of controversy due to accusations of anticompetitive tactics by its manufacturer.
Settlement Details
It works by increasing your eyes’ natural ability to produce tears. More tears means more moisture and comfort for your peepers. Restasis is usually used twice a day and can take a few months to reach its full effect.
The Restasis lawsuit settlement is important. Allergan has agreed to pay almost $30 million to settle claims from people and companies, like employers or insurers, who paid for Restasis between May 1, 2015, and July 31, 2021. However, only certain states are included in this settlement. These states include Arizona, California, Florida, New York, and others. In Arkansas, the eligible period is shorter, from May 1, 2015, to July 31, 2017.
Lawsuit Against Restasis
The class action lawsuit against Allergan alleged that the company used anti-competitive tactics to maintain a monopoly on Restasis. Specifically, the suit claimed that Allergan secured fraudulent patents and took steps to delay generic competition from entering the market.
By keeping generic alternatives off the market, Allergan was able to charge higher prices for Restasis. Patients and third-party payors ended up paying more for the medication than they would have if generics had been available. The lawsuit sought to hold Allergan accountable for these alleged anti-competitive practices.
Other Legal Issues Against Restasis
This settlement resolves just one of several legal issues Allergan has faced over Restasis. In 2017, a federal judge invalidated several key patents on the drug, opening the door for generic competition. Allergan also battled with rival drugmakers in court over their attempts to bring generic versions of Restasis to market.
Despite these challenges, Restasis remained a blockbuster drug for Allergan. In 2017, the year before generics launched, Restasis generated over $1.4 billion in revenue for the company. The introduction of generic competition in 2018 significantly eroded those sales.
Eligibility For Claim & Deadlines
So who is eligible to file a claim in the $30 million settlement? The settlement covers two main groups:
- Consumers who purchased Restasis between May 1, 2015 and July 31, 2021 in certain states, including California, New York, and Florida, among others.
- Third-party payors, like insurance companies, who paid for or provided reimbursement for Restasis during a similar timeframe in those states.
The deadline to file a claim is fast approaching. Claims must be submitted no later than 11:59 pm Pacific Time on August 11, 2023. After that date, you will no longer be able to participate in the settlement.
Claim Process
To submit a claim, you’ll need to provide proof of your Restasis purchases. For consumers, this could include pharmacy records or a note from your doctor stating that Restasis was prescribed.
Third-party payors have to submit more extensive documentation. This includes records showing the total amount paid for Restasis during the relevant time period.
Once you’ve gathered the necessary documentation, you can submit your claim online at the official settlement website. You also have the option to print out a claim form and mail it in.
Class Members
The Restasis settlement includes two main groups of class members:
- Consumers who purchased Restasis between May 1, 2015 and July 31, 2021 in over 30 states, including California, New York, Florida and Illinois. For Arkansas residents, the eligibility period is May 1, 2015 to July 31, 2017.
- Third-party payors, like insurance companies, who paid for or reimbursed Restasis purchases during the same time period and in the same states.
To be eligible, you’ll need proof of purchase, such as pharmacy records or a doctor’s note. The claims period has already closed, so if you haven’t submitted yet, unfortunately you’ve missed the deadline.
Final Approval Hearing
Before the settlement is finalized, the court will hold a Final Approval Hearing. This is when the judge will hear any objections, consider the fairness of the settlement, and decide whether to give final approval.
The hearing was scheduled for May 5, 2023. After final approval, Allergan will have 10 days to pay the $30 million into the settlement fund. Then the process of validating claims and preparing for distribution begins.
Settlement Fund Distribution
Once the settlement is finalized and claims are validated, the fun part begins: distributing the money! The $30 million settlement fund, minus attorneys’ fees and administrative costs, will be divided between all approved claimants.
The amount each class member receives will depend on how much they spent on Restasis and the total number of claimants. Payments are expected to start going out in November 2023.
Conclusion
The Restasis settlement is a significant event that shows the impact of unfair business practices in the pharmaceutical industry. Allergan has agreed to pay almost $30 million to settle claims from people and companies who may have paid too much for Restasis.
For those who were able to file a claim before the deadline, payments are expected to start by November 2023. This case highlights the importance of fair competition to ensure that medications remain affordable and accessible to everyone.
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