Case 3:17-cv-05244 Document 1 Filed 04/03/17 Page 1 of 100 1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT, WESTERN DISTRICT OF WASHINGTON AT SEATTLE 8 9 AMBER RAINEY, CHRISTINA KOLLMEYER, and LISA VOGEL, 10 No. Plaintiffs, 11 COMPLAINT v. 12 MYLAN SPECIALTY, L.P., a Delaware 13 limited partnership, 14 Defendant. 15 16 17 18 19 20 21 22 23 24 25 26 27 28 COMPLAINT Case No. 1918 EIGHTH AVENUE, SUITE 3300 • SEATTLE, WA 98101 (206) 623-7292 • FAX (206) 623-0594 010648.11 949197 V1 Case 3:17-cv-05244 Document 1 Filed 04/03/17 Page 2 of 100 1 TABLE OF CONTENTS 2 Page 3 I. INTRODUCTION ...............................................................................................................1 4 II. PARTIES .............................................................................................................................7 5 A. Plaintiffs ...................................................................................................................7 6 B. Defendant .................................................................................................................8 7 III. JURISDICTION AND VENUE ..........................................................................................8 8 IV. DRUG PRICING IN THE UNITED STATES ....................................................................9 9 A. The Entities Involved in Drug Pricing .....................................................................9 10 B. Different Prices for Different Players ....................................................................10 11 C. Consumer Drug Costs ............................................................................................12 12 D. PBMs Make Money by Manipulating Cost-Saving Incentives .............................20 13 V. EPIPEN ..............................................................................................................................22 14 A. Food Allergies ........................................................................................................22 15 B. The Growth in the Market for Auto-Injectors........................................................22 16 1. Mylan did not develop the EpiPen, but bought the rights to market and distribute the drug. ..................................................................22 17 2. No EpiPen competitor has gained a toehold in the auto-injector 18 market. .......................................................................................................25 19 a. Twinject/Adrenaclick .....................................................................26 20 b. Auvi-Q ...........................................................................................27 21 c. Despite competition for EpiPen, list prices for auto- injectors have risen sharply. ...........................................................27 22 C. The Real Reason for EpiPen’s Increasing List Prices ...........................................29 23 D. The Impact of Mylan’s Artificial Pricing ..............................................................31 24 VI. TOLLING OF THE STATUTE OF LIMITATIONS ........................................................33 25 A. Discovery Rule Tolling ..........................................................................................33 26 B. Fraudulent Concealment Tolling ...........................................................................34 27 C. Estoppel..................................................................................................................34 28 COMPLAINT - i Case No. 1918 EIGHTH AVENUE, SUITE 3300 • SEATTLE, WA 98101 (206) 623-7292 • FAX (206) 623-0594 010648.11 949197 V1 Case 3:17-cv-05244 Document 1 Filed 04/03/17 Page 3 of 100 1 VII. CLASS ACTION ALLEGATIONS ..................................................................................34 2 VIII. CLAIMS FOR RELIEF .....................................................................................................38 3 COUNT ONE VIOLATION OF THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT (“RICO”), 18 U.S.C. § 1961, ET SEQ. ................38 4 A. The EpiPen Pricing Enterprise ...............................................................................38 5 B. Conduct of the EpiPen Pricing Enterprise .............................................................43 6 C. Mylan’s Pattern of Racketeering Activity .............................................................44 7 D. Mylan’s Use of the U.S. Mail and Interstate Wire Facilities .................................46 8 E. Damages Caused by Mylan’s EpiPen Pricing Fraud .............................................48 9 COUNT TWO VIOLATION OF THE NEW JERSEY CONSUMER FRAUD ACT 10 AGAINST MYLAN (N.J. STAT. ANN. § 56:8-1, ET SEQ.) ..........................................49 11 COUNT THREE VIOLATION OF THE ALABAMA DECEPTIVE TRADE PRACTICES ACT (ALA. CODE § 8-19-1, ET SEQ.) ....................................................49 12 COUNT FOUR VIOLATION OF THE ALASKA UNFAIR TRADE PRACTICES 13 AND CONSUMER PROTECTION ACT (ALASKA STAT. ANN. § 45.50.471, ET SEQ.) ..........................................................................................................51 14 COUNT FIVE VIOLATION OF THE ARIZONA CONSUMER FRAUD ACT 15 (ARIZONA REV. STAT. § 44-1521, ET SEQ.)................................................................52 16 COUNT SIX VIOLATION OF THE ARKANSAS DECEPTIVE TRADE PRACTICES ACT (ARK. CODE ANN. § 4-88-101 ET SEQ.) .......................................53 17 COUNT SEVEN VIOLATION OF THE CALIFORNIA LEGAL REMEDIES ACT 18 (CAL. CIV. CODE § 1750, ET SEQ.) ...............................................................................54 19 COUNT EIGHT VIOLATION OF THE CALIFORNIA UNFAIR COMPETITION LAW (CAL. BUS. & PROF. CODE § 17200, ET SEQ.) .................................................55 20 COUNT NINE VIOLATION OF THE COLORADO CONSUMER PROTECTION 21 ACT (COLO. REV. STAT. § 6-1-101, ET SEQ.) ............................................................56 22 COUNT TEN VIOLATION OF THE CONNECTICUT UNFAIR TRADE PRACTICES ACT (CONN. GEN. STAT. § 42-110A, ET SEQ.)....................................57 23 COUNT ELEVEN VIOLATION OF THE DELAWARE CONSUMER FRAUD 24 ACT (DEL. CODE TIT. 6, § 2513, ET SEQ.) ..................................................................58 25 COUNT TWELVE VIOLATION OF THE D.C. CONSUMER PROTECTION PROCEDURES ACT (D.C. CODE § 28-3901, ET SEQ.) ...............................................59 26 COUNT THIRTEEN VIOLATION OF THE FLORIDA UNFAIR AND 27 DECEPTIVE TRADE PRACTICES ACT (FLA. STAT. § 501.201, ET SEQ.) ..............60 28 COUNT FOURTEEN VIOLATION OF THE GEORGIA FAIR BUSINESS COMPLAINT - ii Case No. 1918 EIGHTH AVENUE, SUITE 3300 • SEATTLE, WA 98101 (206) 623-7292 • FAX (206) 623-0594 010648.11 949197 V1 Case 3:17-cv-05244 Document 1 Filed 04/03/17 Page 4 of 100 1 PRACTICES ACT (GA. CODE ANN. § 10-1-390, ET SEQ.) ........................................60 2 COUNT FIFTEEN VIOLATION OF THE GEORGIA UNIFORM DECEPTIVE TRADE PRACTICES ACT (GA. CODE. ANN § 10-1-370, ET SEQ.) ..........................61 3 COUNT SIXTEEN VIOLATION OF THE HAWAII ACT § 480-2(A) (HAW. 4 REV. STAT. § 480, ET SEQ.) ...........................................................................................61 5 COUNT SEVENTEEN VIOLATION OF THE IDAHO CONSUMER PROTECTION ACT (IDAHO CODE ANN. § 48-601, ET SEQ.) ..................................62 6 COUNT EIGHTEEN VIOLATION OF THE ILLINOIS CONSUMER FRAUD 7 AND DECEPTIVE BUSINESS PRACTICES ACT (815 ILL. COMP. STAT. § 505/1, ET SEQ. AND 720 ILL. COMP. STAT. § 295/1A) ............................................63 8 COUNT NINETEEN VIOLATION OF THE INDIANA DECEPTIVE CONSUMER 9 SALES ACT (IND. CODE § 24-5-0.5-3) .........................................................................64 10 COUNT TWENTY VIOLATION OF THE IOWA PRIVATE RIGHT OF ACTION FOR CONSUMER FRAUDS ACT (IOWA CODE § 714H.1, ET SEQ.) .......................65 11 COUNT TWENTY-ONE VIOLATION OF THE KANSAS CONSUMER 12 PROTECTION ACT (KAN. STAT. ANN. § 50-623, ET SEQ.) .....................................66 13 COUNT TWENTY-TWO VIOLATION OF THE KENTUCKY CONSUMER PROTECTION ACT (KY. REV. STAT. ANN. § 367.110, ET SEQ.).............................67 14 COUNT TWENTY-THREE VIOLATION OF THE LOUISIANA UNFAIR TRADE 15 PRACTICES AND CONSUMER PROTECTION LAW (LA. REV. STAT. ANN. § 51:1401, ET SEQ.) ...............................................................................................68 16 COUNT TWENTY-FOUR VIOLATION OF THE MAINE UNFAIR TRADE 17 PRACTICES ACT (ME. REV. STAT. ANN. TIT. 5, § 205-A, ET SEQ.) ......................68 18 COUNT TWENTY-FIVE VIOLATION OF THE MARYLAND CONSUMER PROTECTION ACT (MD. CODE, COM. LAW § 13-101, ET SEQ.) ............................69 19 COUNT TWENTY-SIX VIOLATION OF THE MASSACHUSETTS GENERAL 20 LAW CHAPTER 93(A) (MASS. GEN. LAWS CH. 93A, § 1, ET SEQ.) .......................70 21 COUNT TWENTY-SEVEN VIOLATION OF THE MICHIGAN CONSUMER PROTECTION ACT (MICH. COMP. LAWS § 445.903, ET SEQ.) ...............................71 22 COUNT TWENTY-EIGHT VIOLATION OF THE MINNESOTA PREVENTION 23 OF CONSUMER FRAUD ACT (MINN. STAT. § 325F.68, ET SEQ.) ..........................72 24 COUNT TWENTY-NINE VIOLATION OF THE MINNESOTA DECEPTIVE TRADE PRACTICES ACT (MINN. STAT. § 325D.43-48, ET SEQ.) ...........................73 25 COUNT THIRTY VIOLATION OF THE MISSISSIPPI CONSUMER 26 PROTECTION ACT (MISS. CODE. ANN. § 75-24-1, ET SEQ.) ..................................73 27 COUNT THIRTY-ONE VIOLATION OF THE MISSOURI MERCHANDISING PRACTICES