Welcome to the AWP Track 2 Settlement Website
A second distribution of the remaining funds was approved by the court in December 2016. A copy of the Order can be viewed here.
There is a Class Action Settlement with various drug manufacturers (“Defendants”)
concerning approximately 200 Drugs that are listed in the Covered Drugs List.This is a class action lawsuit in the
U.S. District Court for the District of Massachusetts. The name of the lawsuit is
In re: Pharmaceutical Average Wholesale Price Litigation, Docket No. 01-CV-12257-PBS,
MDL No. 1456.
The lawsuit claims that certain drug companies reported false and inflated average
wholesale prices (“AWP”) for certain types of outpatient drugs. The Average Wholesale
Price (“AWP”) is used to set reimbursement amounts that are paid by a) Medicare
and its beneficiaries, b) private health insurers, and c) consumers making full
cash or percentage co-payments under private health insurance plans. The lawsuit
claims that Defendants reported false and inflated AWPs for the drugs at issue,
which in turn raised the price consumers, Medicare, and insurers paid for the drugs.
Defendants deny the claims in the lawsuit but have agreed to pay $125 million to
settle these and other related claims. This Proposed Settlement is not an admission
of wrongdoing or an indication that any law was violated. The costs of administering
the Proposed Settlement as well as attorneys' fees will be deducted from the Settlement
Fund before distributions to Class Members.
The remaining fund will be distributed to consumers and Third-Party Payors who submit
a valid claim.