New Jersey federal judge allows case brought against Sanofi, Novo Nordisk and Eli Lilly.
Initially filed in 2017, the class-action suit against Sanofi, Novo Nordisk and Eli Lilly claimed that the companies violated state consumer protection laws in pricing insulin high and offering behind-the-scenes discounts and rebates. They also asserted that the companies violated the federal Racketeer Influenced and Corrupt Organizations Act.
New Jersey federal judge Brian Martinotti tossed out the racketeering claims, but gave an okay for the case based on claims of that the companies violated state consumer protection laws, to go to court.
The lawsuit asserts that insulin prices have risen 150% in recent years, causing out-of-pocket costs to rise as well, while pharmacy benefit managers (PBMs) are receiving larger and larger rebates so they will keep the drugs listed in their formularies. Costs to patients, according to the plaintiffs, can reach $900 per month. Patients are sometimes taking lower doses or foregoing eating as an alternative means for controlling their blood sugar levels.
The companies responded by arguing that the plaintiffs “seek to criminalize a fundamental aspect of the pharmaceutical industry" and failed to “identify any fraudulent, unfair or unconscionable conduct.”
Steve Berman, co-lead counsel in the case, said the judge’s decision clears the way for the legal team to begin obtaining discovery from the manufacturers and PBMs. All three companies indicated they would continue to defend their firms against any remaining claims and indicated that the allegations were meritless.
