DOJ: News Release

State Receives Settlement Money in Drug Price-Fixing Case

HELENA – Montana Attorney General Mike McGrath said Wednesday that 644 Montana residents will split more than $149,000 as part of a settlement in a drug price-fixing case.

Fifty states, the District of Columbia and the Federal Trade Commission alleged that Mylan Pharmaceuticals, a manufacturer of the generic drugs lorazepam and clorazepate, entered into an exclusive agreement with a potential competitor, Profarmaco. After entering into the agreement, Mylan inflated the price of lorazepam and clorazepate tablets available to consumers, Medicaid programs, wholesalers, retailers and others by as much as 3,200 percent.

“This is yet another example of corporate irresponsibility,” McGrath said. “Our action was designed to hold these firms accountable to the people of Montana.”

McGrath said the settlement also brought $39,475 to the state, with $34,375 paid into the General Fund and the remaining $5,100 going to cover the state’s legal work on the case.

Under the agreement, Mylan denies the allegations brought by the states but agrees to pay $100 million in settlement fees and $8 million in attorney fees.

To receive settlement funds, consumers must have purchased the medications between January 1, 1998 and December 31, 1999 and must have filed a valid complaint form by September 29, 2001.

Lorazepam and clorazepate are used to treat anxiety, some seizure disorders and other conditions.

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