News

Federal Court Enters Judgment Against AstraZeneca and Bristol Myers Squibb

The Honorable Patti B. Saris of the United States District Court for the District of Massachusetts, who has been presiding over the AWP Litigation, entered judgment against Defendants AstraZeneca ("AZ") and Bristol Myers Squibb ("BMS"). The judgment concludes a 9-week trial that ended on January 26, 2007 and resulted in an 183-page opinion issued on June 21 of this year. WW serves as co-lead counsel in the litigation.

Judge Saris found that the conduct of AZ and BMS was willful and knowing with regard to MediGap payors, third-party payors who reimbursed Medicare beneficiaries for their 20% coinsurance obligations under Medicare Part B. With regard to AZ, she found that "Astrazeneca 'marketed the spread' in a strategy that sold its drug Zoladex based on its profitability to the doctor's office; this violated industry standards and was unethical. The evidence of marketing the spread was clearcut and the damage to sick and old beneficiaries inevitable." With regard to BMS, she found that BMS's conduct was willful and knowing when less than ten percent of its sales were made within 5% of its list price, "and the spreads were huge." Judge Saris also entered single damages against AZ and BMS for their conduct with regard to third-party payors who reimbursed for AZ's and BMS's drugs outside of the Medicare Part B context. In total, the Court entered $12,941,869.00 in damages against AstraZeneca and $695,594.00 against BMS. These amounts are for Massachusetts class members only. Plaintiffs will be moving to certify nationwide classes against AZ and BMS in 21 days.

For a copy of the order, click here.