United States District Court for the District of Massachusetts
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Case 1:01-cv-12257-PBS Document 7146 Filed 06/18/10 Page 1 of 234 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS ) IN RE PHARMACEUTICAL INDUSTRY ) AVERAGE WHOLESALE PRICE ) MDL No. 1456 LITIGATION ) ) CIVIL ACTION: 01-CV-12257-PBS _________________________________________ ) THIS DOCUMENT RELATES TO ALL ) Judge Patti B. Saris MASSACHUSETTS CLASS ACTIONS ) CONCERNING CLASSES 2 & 3 ) SETTLEMENT AGREEMENT AND RELEASE OF ASTRAZENECA RELATED TO MASSACHUSETTS CLASSES TWO AND THREE 001534-16 375596 v1 Case 1:01-cv-12257-PBS Document 7146 Filed 06/18/10 Page 2 of 234 TABLE OF CONTENTS I. CLASS DEFINITION.........................................................................................................4 A. Third-Party Payor MediGap Supplemental Insurance Class (“Class 2”). ...............4 B. Consumer and Third-Party Payor Class For Payments Made Outside the Medicare Context (“Class 3”)..............................................................................................................4 II. OTHER DEFINITIONS......................................................................................................5 III. SETTLEMENT TERMS...................................................................................................10 A. Certification of Settlement Classes........................................................................10 B. Settlement Amount. ...............................................................................................10 C. Settlement Fund/Escrow Account/Qualified Settlement Fund..............................11 1. Settlement Fund/Escrow Account..............................................................11 2. Qualified Settlement Fund. ........................................................................12 D. Refunds to AstraZeneca for TPP Opt-Outs/TPP Opt-Out Requirements..............12 1. Refunds for TPP Opt-Outs.........................................................................12 2. TPP Opt-Out Requirements. ......................................................................13 3. Determination of TPP Opt-Out Amounts and AstraZeneca Opt-Out Refund, and Dispute Resolution Process...............................................................14 E. Allocation of Benefits to Settlement Classes.........................................................15 F. Disbursements and Distributions from the Settlement Fund. ................................16 G. Motion for Preliminary Approval. .........................................................................20 H. Stay and Resumption of Proceedings. ...................................................................20 I. Entry of Final Judgment.........................................................................................20 J. Effective Date........................................................................................................21 K. Satisfaction of AstraZeneca’s Obligations.............................................................21 L. All Released Claims Satisfied By Settlement Fund...............................................22 IV. CLAIMS ADMINISTRATION.........................................................................................22 A. Claims Administrator/Claims Office. ....................................................................22 B. Notice.....................................................................................................................23 C. Deadlines................................................................................................................24 1. Opt-Out Deadline.......................................................................................24 2. Claims Deadlines. ......................................................................................24 D. Compensation to Consumers and TPPs. ................................................................25 i 001534-16 375596 v1 Case 1:01-cv-12257-PBS Document 7146 Filed 06/18/10 Page 3 of 234 E. Court Approval of Disbursements and Distributions. ...........................................25 F. Retention of Records..............................................................................................25 V. EXCLUSIVE REMEDY/DISMISSAL OF CLAIMS/JURISDICTION...........................25 A. Exclusive Remedy. ................................................................................................25 B. Dismissal of Claims. ..............................................................................................26 C. Jurisdiction.............................................................................................................26 VI. RELEASES AND RESERVATIONS ...............................................................................26 A. Released Claims.....................................................................................................26 1. Released Consumer Class Claims..............................................................26 2. Released TPP Class Claims. ......................................................................27 B. Reservation of Claims and Rights..........................................................................29 VII. ADMINISTRATIVE EXPENSES AND ATTORNEYS’ FEES ......................................30 A. Administrative Expenses.......................................................................................30 B. Attorneys’ Fees......................................................................................................30 1. Lead Class Counsel....................................................................................30 VIII. MISCELLANEOUS PROVISIONS..................................................................................31 A. Reasonable Best Efforts.........................................................................................31 B. No Admission. .......................................................................................................31 C. Enforcement...........................................................................................................31 D. Authorization to Enter Agreement.........................................................................31 E. No Party Is the Drafter...........................................................................................32 F. Choice of Law........................................................................................................32 G. Amendment or Waiver...........................................................................................32 H. Execution in Counterparts......................................................................................32 I. Integrated Agreement.............................................................................................33 J. Construction...........................................................................................................33 IX. TERMINATION OF THIS AGREEMENT ......................................................................33 A. Automatic Termination..........................................................................................33 B. Effect of Termination.............................................................................................33 ii 001534-16 375596 v1 Case 1:01-cv-12257-PBS Document 7146 Filed 06/18/10 Page 4 of 234 TABLE OF EXHIBITS EXHIBIT A ― Notice Forms to Class 3 Consumers A.1. Short Form Publication Notice to Class 3 Consumers A.2. Long Form Notice to Class 3 Consumers A.3. Consumer Claim Form EXHIBIT B ― Notice Forms to TPPs B.1 Long Form Notice To TPPs B.2 TPPs Claim Form EXHIBIT C ― Intentionally Left Blank EXHIBIT D ― Full Settlement Notice Program EXHIBIT E ― [Proposed] Preliminary Approval Order EXHIBIT F ― Escrow Agreement EXHIBIT G ― [Proposed] Final Approval Order EXHIBIT H ― Claims Process Explanation iii 001534-16 375596 v1 Case 1:01-cv-12257-PBS Document 7146 Filed 06/18/10 Page 5 of 234 SETTLEMENT AGREEMENT AND RELEASE OF ASTRAZENECA RELATED TO MASSACHUSETTS CLASSES TWO AND THREE This Settlement Agreement and Release (“this Agreement”) is submitted to the United States District Court for the District of Massachusetts pursuant to Rule 23 of the Federal Rules of Civil Procedure. Subject to Court approval, this Agreement is entered into between and among the following parties (the “Parties”), by and through their respective counsel: (i) Class Representatives of Classes 2 and 3 on behalf of themselves and the Settlement Classes (as such classes are hereinafter defined) (collectively, “Class Plaintiffs”); and (ii) Defendant AstraZeneca Pharmaceuticals LP (“AstraZeneca”). WHEREAS, there is a consolidated and coordinated proceeding pending in the United States District Court for the District of Massachusetts (the “Court” or “MDL Court”), In re Pharmaceutical Industry Average Wholesale Price Litigation, MDL 1456, No 01-CV-12257- PBS (D. Mass.) (“MDL Class Actions”), comprised of actions in which Class Plaintiffs have alleged, inter alia, that AstraZeneca and other entities have engaged in unlawful inflation and misrepresentation of the published Average Wholesale Prices (“AWPs”) for various AstraZeneca drugs including Zoladex® and Pulmicort Respules®, and allegedly unlawful use of AWPs in the marketing of such drugs; WHEREAS, in an Order dated January 30, 2006, the MDL Court certified classes of plaintiffs as to claims asserted in the MDL Class Complaints under Mass G. L. c 93A including the Settlement Classes as hereinafter defined; WHEREAS,