A PYMNTS Company

Allergan, Loestrin Buyers Get OK For $168M Birth Control Settlement

By  |  September 2, 2020

Allergan subsidiary Warner Chilcott and three groups of birth control purchasers convinced a federal judge in Rhode Island to approve settlements worth US$167.5 million of claims that it used illegal patent deals to delay generic versions of Loestrin 24 PE, reported Bloomberg Law.

Judge William E. Smith gave his blessing in three separate orders Tuesday, September 2, to agreements resolving proposed class action allegations on behalf of “direct purchasers” like drug distributors, “end payers” like consumers, and “third party payers” like insurers and union pension funds.

Buyers of the contraceptives sued two Allergan subsidiaries, Warner Chilcott and Watson, in federal court alleging that the companies paid generic drugmakers to delay marketing generic versions of the drug. The cases were consolidated in the US District Court for Rhode Island.

Warner Chilcott and Watson will pay a combined US$300 million to direct and indirect purchasers of the contraceptives. The settlement, which is subject to court approval, makes no admission of wrongdoing.