Pfizer agrees to pay $93 million to settle an antitrust lawsuit

Pfizer has agreed to pay $93 million to settle antitrust lawsuits brought by wholesale drug distributors who accused it of conspiring with India’s Ranbaxy Laboratories to delay sales of less expensive generic versions of its cholesterol drug Lipitor.

Lawyers for Lipitor’s buyers, including Rochester Drug Co-Operative Inc and Drogueria Betances LLC of Puerto Rico, disclosed the agreement in a filing filed on Wednesday, February 14, in a US court in Trenton, New Jersey. The distributors’ case will continue against Ranbaxy, the lawyers said.

According to CNBC, the proposed settlement, which requires a judge’s approval, comes after more than a decade of litigation. Pfizer did not admit responsibility.

In a statement, Pfizer described these allegations as “factually and legally baseless.” She said the settlement was “fair, reasonable, and the best way to resolve this dispute.”

A representative for Sun Pharma, which acquired Ranbaxy in 2014, did not immediately respond to a request for comment from Reuters.

Pfizer introduced Lipitor in 1997, and the drug generated more than $130 billion in sales during its first 14 years on the market.

The drug distributors claimed that Pfizer fraudulently sought to extend its patent rights on Lipitor. They accused the company of paying Ranbaxy to delay introducing a generic version of Lipitor and engaging in a sham lawsuit with Ranbaxy over the drug.

Plaintiffs’ attorneys said the settlement provides “immediate economic relief” to class members and avoids the risk of continued litigation, potential appeals and failure to recover. They said they would seek up to $31 million in legal fees from the settlement fund.