233 F.R.D. 229 (D.Mass. 2006)
In re PHARMACEUTICAL INDUSTRY AVERAGE WHOLESALE PRICE LITIGATION.
M.D.L. No. 1456.
United States District Court, D. Massachusetts.
January 30, 2006
CONSOLIDATED ORDER RE: MOTION FOR CLASS CERTIFICATION
SARIS, District Judge.
Pursuant to Fed.R.Civ.P. 23, plaintiffs have moved for an order certifying a class in this action. After considering the submissions of the parties and the record in this case, and after hearing on January 19, 2006, I order that plaintiffs' motion for class certification is ALLOWED IN PART and DENIED IN PART as to the claims asserted in the Third Amended Master Consolidated Class Action Complaint (" TAMCCAC" ). The Court relies on the reasons stated in court and in In re Pharm. Indus. Average Wholesale Price Litig., 230 F.R.D. 61 (D.Mass.2005). The classes are certified as follows:
I. CLASSES AND SUBCLASSES CERTIFIED
A. Class 1: Medicare Part B Co-Payment Class
1. Class Definition:
All natural persons nationwide who made, or who incurred an obligation enforceable at the time of judgment to make, a co-payment based on AWP for a Medicare Part B covered Subject Drug
that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, or the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.). Excluded from the Class are those who made flat co-payments, who were reimbursed fully for any co-payments, or who have the right to be fully reimbursed; and the residents of the states of Alabama, Alaska, Georgia, Iowa, Kentucky, Louisiana, Mississippi, Montana, and Virginia (where consumer protection statutes do not permit class actions).
The Subject Drugs are identified in the Table of Subject Drugs found at the end of this Order. Defendants recently raised the issue that some drugs were improperly included. After conferring, the parties may move to strike drugs included in error.
2. The Court certifies four Subclasses corresponding to each of the defendant groups.
3. The Court certifies the following plaintiffs as representatives of these Subclasses pursuant to Fed.R.Civ.P. 23(b)(3). Leroy Townsend (AstraZeneca); David and Susan Ruth Aaronson (GlaxoSmithKline, the BMS Group); Joyce Howe, individually and on behalf of the Estate of Robert Howe (AstraZeneca); James and Teresa Shepley (the Johnson & Johnson Group); Larry Young, individually and on behalf of the Estate of Patricia Young (the Johnson & Johnson Group). The representative of a Subclass need only have paid for one of the Subject Drugs manufactured or marketed by a defendant group. I decline to certify a class of persons who made co-payments for drugs manufactured by the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation) because plaintiffs have not proposed any adequate and typical representatives of that proposed subclass.
4. The consumer protection act of each state shall apply to these Subclasses. Specifically, the Medicare Part B Co-payment Class is certified for claims under the following statutes: (a) Ariz.Rev.Stat. § 44-1522, et seq.; (b) Ark.Code § 4-88-101, et seq.; (c) Cal. Bus. & Prof.Code §§ 17200, et seq., 1770; (d) Colo.Rev.Stat. § 6-1-105, et seq.; (e) Conn. Gen.Stat. § 42-110b, et seq.; (f) 6 Del.Code § 2511, et seq.; (g) D.C.Code § 28-3901, et seq.; (h) Fla. Stat. § 501.201, et seq.; (i) Haw.Rev.Stat. § 480, et seq.; (j) Idaho Code § 48-601, et seq.; (k) 815 ILCS § 505/1, et seq.; (1) Ind.Code Ann. § 24-5-0.5.1, et seq.; (m) Kan. Stat. § 50-623, et seq.; (n) Md. Com. Law Code § 13-101, et seq.; ( o ) Mass. Gen. L. Ch. 93A, et seq.; (p) Mich. Stat. § 445.901, et seq.; (q) Minn.Stat. § 325F.67, et seq.; (r) Mo.Rev.Stat. § 407.010, et seq.; (s) Neb.Rev.Stat. § 59-1601, et seq.; (t) Nev.Rev.Stat. § 598.0903, et seq.; (u) N.H.Rev.Stat. § 358-A:1, et seq.; (v) N.J. Stat. Ann. § 56:8-1, et seq.; (w) N.M. Stat. Ann. § 57-12-1, et seq.; (x) N.Y. Gen. Bus. Law § 349, et seq.; (y) N.C. Gen.Stat. § 75-1.1, et seq.; (z) N.D. Cent.Code § 51-15-01, et seq.; (aa) Ohio Rev. Stat. § 1345.01, et seq.; (bb) Okla. Stat. tit. 15 § 751, et seq.; (cc) Or.Rev.Stat. § 646.605, et seq.; (dd) 73 Pa. Stat. § 201-1, et seq.; (ee) R.I. Gen. Laws. § 6-13.1-1, et seq.; (ff) S.C.Code Laws § 39-5-10, et seq.; (gg) S.D.Code Laws § 37-24-1, et seq.; (hh) Tenn.Code § 47-18- 101, et seq.; (ii) Tex. Bus. & Com.Code § 17.41, et seq.; (jj) Utah Code Ann. § 13-1 1-1, et seq.; (kk) Vt. Stat. Ann. tit. 9, § 245 1, et seq.; (ll) Wash. Rev.Code § 19.86.010, et seq.; (mm) W.Va.Code § 46A-6-101, et seq.; (nn) Wis. Stat. § 100.18, et seq.; and (oo) Wyo. Stat. § 40-12-100, et seq. Plaintiffs allege that they have complied with the notice provisions of all consumer protection acts requiring such notice.
5. This Class is certified pursuant to Fed.R.Civ.P. 23(b)(3).
B. Class 2: Third-Party Payor MediGap Supplemental Insurance Class
1. Class Definition:
All Third-Party Payors who made reimbursements for drugs purchased in Massachusetts, or who made reimbursements for drugs and have their principal place of business in Massachusetts, based on AWP for a Medicare Part B covered Subject Drug that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.), or the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation).
2. The Court certifies five Subclasses corresponding to each of the defendant groups.
3. The Court certifies plaintiffs Blue Cross/Blue Shield of Massachusetts and Sheet Metal Workers National Health Fund as the representatives for this Class.
4. The claims for this Class are certified under Mass. Gen. Laws ch. 93A.
5. This Class is certified pursuant to Fed.R.Civ.P. 23(b)(3).
C. Class 3: Consumer and Third-Party Payor Class for Medicare Part B Drugs Outside of the Medicare Context.
1. Class Definition:
All natural persons who made or who incurred an obligation enforceable at the time of judgment to make a payment for purchases in Massachusetts, all Third-Party Payors who made reimbursements based on contracts expressly using AWP as a pricing standard for purchases in Massachusetts, and all Third-Party Payors who made reimbursements based on contracts expressly using AWP as a pricing standard and have their principal place of business in Massachusetts, for a physician-administered Subject Drug that was manufactured by AstraZeneca (AstraZeneca, PLC, Zeneca, Inc., AstraZeneca Pharmaceuticals L.P., and AstraZeneca U.S.), the BMS Group (Bristol-Myers Squibb Co., Oncology Therapeutics Network Corp., and Apothecon, Inc.), SmithKline Beecham Corporation d/b/a GlaxoSmithKline, the Johnson & Johnson Group (Johnson & Johnson, Centocor, Inc., Ortho Biotech, McNeil-PPC, Inc., and Janssen Pharmaceutica Products, L.P.), or the Schering Plough Group (Schering-Plough Corporation and Warrick Pharmaceuticals Corporation). Included within this Class are natural persons who paid coinsurance (
i.e., co-payments proportional to the reimbursed amount) for a Subject Drug purchased in Massachusetts, where such coinsurance was based upon use of AWP as a pricing standard. Excluded from this Class are any payments or reimbursements for generic drugs that are based on MAC and not AWP.
2. The Court certifies five Subclasses corresponding to each of the defendant groups.
3. The Court certifies plaintiff Pipefitters Local 537 Trust Funds and Blue Cross/Blue Shield of Massachusetts as the representatives for this Class pursuant to Fed.R.Civ.P. 23(b)(2) and 23(b)(3). The Court also certifies Health Care For All as the representative for this Class pursuant to Fed R. Civ. P. 23(b)(2).
4. The claims for this Class are certified under Mass. Gen. Laws ch. 93A.
II. CLASSES NOT CERTIFIED
1. With respect to Class 2, plaintiffs have not submitted an adequate analysis of the feasibility of a nationwide class of Third-Party Payors. Therefore, the Court declines at this time to certify this Class under the consumer protection laws of states other than Massachusetts. However, this denial is without prejudice.
2. With respect to Class 3, the Court declines at this time to certify this Class under the consumer protection laws of states other than Massachusetts. However, this denial is without prejudice.
3. The Court declines to certify a class of persons or Third-Party Payors who made payments or reimbursements for self-administered drugs not appearing in the appended Table of Subject Drugs. This denial is with prejudice.
III. MISCELLANEOUS
1. The Class Period for Class 1 and Class 2 is January 1, 1991 to January 1, 2005. The class period for Class 3 is January 1, 1991 to the present.
2. Excluded from these Classes are: any subsidiaries or affiliates of defendants; the officers and directors of defendants during the Class Period; members of defendants' immediate families; any person, firm, trust, corporation, officer, director, or any individual or entity in which any defendant has a controlling interest or which is related to, or affiliated with, any defendant; the legal representatives, agents, affiliates, heirs, successors-in-interest, or assigns of any such excluded parties and governmental entities.
3. Pursuant to Fed.R.Civ.P. 23(g), the Court appoints the following firms as Co-Lead Counsel: Hagens Berman Sobol Shapiro LLP; Spector Roseman & Kodroff, P.C.; Hoffman & Edelson; The Wexler Firm; and Kline & Specter.
4. The " Together Rx" claims are not certified because they are dismissed without prejudice by the filing of the TAMCCAC.
5. The Court retains the discretion under Rule 23 to modify this Order. Modifications may include adding new class representatives, striking existing class representatives, and striking drugs from the Table of Subject Drugs.
6. The Court declines to certify issues for an interlocutory appeal pursuant to 28 U.S.C. § 1292(b) or to recommend appeal pursuant to Fed.R.Civ.P. 23(f).
TABLE OF SUBJECT DRUGS
| 00186198804 |
PULMICORT RESPULES 60 mls 2 X 30.25mg/2mL |
| 00186198904 |
PULMICORT RESPULES 60 mls 2x30 .5mg/2mL |
| 00310096036 |
Zoladex 3.6mg 1x1EA Depot |
| 00310096130 |
Zoladex 10.8mg 1x1EA Depot |
| 00310095130 |
Zoladex 10.8mg 1x1EA Depot |
| 00310095036 |
Zoladex 3.6mg 1x1EA Depot |
| 00015301026 |
BLENOXANE INJ 15 UNIT VHA |
| 00015301020 |
BLENOXANE INJ 15 UNIT VL |
| 00015306326 |
BLENOXANE INJ 30 UNIT VHA |
| 00015306301 |
BLENOXANE INJ 30 UNIT VL |
| 00590032435 |
COUMADIN INJ 5MG VIAL |
| 00015053910 |
CYTOXAN 100MG LYOPH W/CYT |
| 00015054812 |
CYTOXAN 1G 6X50ML VHA+ |
| 00015054810 |
CYTOXAN 1GM LYOPH W/CYTOG |
| 00015054610 |
CYTOXAN 200MG LYOPH W/CYT |
| 00015054912 |
CYTOXAN 2G 6X100ML VHA+ |
| 00015054910 |
CYTOXAN 2GM LYOPH W/CYTOG |
| 00015054710 |
CYTOXAN 500MG LYOPH W/CYT |
| 00015050001 |
CYTOXAN FOR INJ 100 MG |
| 00015050041 |
CYTOXAN INJ 100MG |
| 00015050641 |
CYTOXAN INJ 1X2GM VIAL |
| 00015050241 |
CYTOXAN INJ 1X500MG VIAL |
| 00015050141 |
CYTOXAN INJ 200MG |
| 00015054712 |
CYTOXAN LYO 500MG VL VHA |
| 00015054741 |
CYTOXAN LYOPH 500MG |
| 00015053941 |
CYTOXAN LYOPHILIZED 100MG |
| 00015054841 |
CYTOXAN LYOPHILIZED 1GM |
| 00015054641 |
CYTOXAN LYOPHILIZED 200MG |
| 00015054941 |
CYTOXAN LYOPHILIZED 2GM |
| 00015050541 |
CYTOXAN PINJ 1X1G VIAL |
| 00015050303 |
CYTOXAN TABLETS 50 MG |
| 00015050302 |
CYTOXAN TABLETS 50MG |
| 00015050401 |
CYTOXAN TABS 25MG |
| 00015050301 |
CYTOXAN TABS 50MG |
| 00015050348 |
CYTOXAN TABS 50MG |
| 00015340420 |
ETOPOPHOS 100MG VIAL |
| 00015321429 |
PARAPLATIN 10X15ML VHA+ |
| 00015321529 |
PARAPLATIN 10X45ML VHA+ |
| 00015321329 |
PARAPLATIN 10X5ML VHA+ |
| 00015321410 |
PARAPLATIN 150MG LYOPH CY |
| 00015321430 |
PARAPLATIN 1X150MG LYO VL |
| 00015321530 |
PARAPLATIN 1X450MG LYO VL |
| 00015321510 |
PARAPLATIN 450MG VL W/CYT |
| 00015321330 |
PARAPLATIN 50MG LYOPHILIZ |
| 00015321310 |
PARAPLATIN 50MG W/CYTO |
| 00015335322 |
RUBEX 100 MG LYOPHILIZED |
| 00015335324 |
RUBEX 100MG IMMUNEX LABEL |
| 00015335124 |
RUBEX 10MG IMMUNEX LABEL |
| 00015335122 |
RUBEX 10MG LYOPHILIZED |
| 00015335224 |
RUBEX 50MG IMMUNEX LABEL |
| 00015335222 |
RUBEX 50MG LYOPHILIZED |
| 00015347630 |
TAXOL 100MG INJ MULTIDOSE |
| 00015347627 |
TAXOL 100MG SEM-SYN VIAL |
| 00015347620 |
TAXOL 100MG/16.7ML VHA+ L |
| 00015347911 |
TAXOL 300MG/50ML VIAL |
| 00015345620 |
TAXOL 30MG CONC FOR INJ |
| 00015347530 |
TAXOL 30MG INJ MULTIDOSE |
| 00015347527 |
TAXOL 30MG SEM-SYN VIAL |
| 00015347520 |
TAXOL 30MG/5ML VHA+ LABEL |
| 00015309510 |
VEPESID 100MG VIAL W/CYTO |
| 00015309530 |
VEPESID 100MG VL W/O CYTO |
| 00015306224 |
VEPESID 1G 50ML VIAL VHA+ |
| 00015306220 |
VEPESID 1GM/50ML |
| 00015306120 |
VEPESID 500MG |
| 00015306124 |
VEPESID 500MG 25ML VL VHA |
| 00015309145 |
VEPESID 50MG CAPSULES |
| 00015309520 |
VEPESID INJ 100MG/5ML |
| 00015308420 |
VEPESID INJ 150MG/7.5ML |
| SmithKline Beecham Corporation d/b/a GlaxoSmithKline |
| 00173013093 |
ALKERAN I.V. INJ 50 MG |
| 00173004535 |
ALKERAN TAB 2MG 50S |
| 00173044902 |
IMITREX INJ 0.5ML 12MG/ML 5S VIALS |
| 00173044901 |
IMITREX INJ 12MG/ML 0.5ML 2S PFLD SRNG |
| 00173044903 |
IMITREX INJ 12MG/ML 0.5ML2S KIT,SELFDOSE |
| 00173047900 |
IMITREX INJ 12MG/ML STAT DOSE KIT |
| 00173047800 |
IMITREX INJ 12MG/ML STAT DOSE RFL 2'S |
| 00173403291 |
IMITREX SELFDOSE SYSTEM SELFDOSE UNIT/C |
| 00173408367 |
ITMD ZOVIRAX STERILE POWDER 1000MG (BWX9 |
| 00029415105 |
KYTRIL 1 MG TABS 20'S SUP |
| 00029415139 |
KYTRIL 1MG TABS 2'S |
| 00029415201 |
KYTRIL 1MG/ML INJECTION 4ML VIAL |
| 00029414975 |
KYTRIL INJ SGL DOSE VIAL 1MG/ML VHA |
| 00029414901 |
KYTRIL INJ SINGLE DOSE VIAL 1MG/ML |
| 00173026010 |
LANOXIN INJ 0.5MG -PART 1.00 |
| 00173026035 |
LANOXIN INJ 0.5MG 2ML 50S |
| 00173026210 |
LANOXIN INJ PEDIATRIC 0.1MG/ML |
| 00173026015 |
LANOXIN INJECTION -PART 1.00 |
| 00173026055 |
LANOXIN INJECTION -PART 1.00 |
| 00173071325 |
MYLERAN TAB 2MG 25S |
| 00173065601 |
NAVELBINE INJ 10MG 1ML |
| 00173065644 |
NAVELBINE INJ 50MG 5ML |
| 00173010793 |
RETROVIR IV INF 10MG/ML 20ML 10 |
| 00173041900 |
VENTOLIN NEB SOL INH 0.083% 3ML 25S |
| 00173041901 |
VENTOLIN NEB SOL INH 0.083% 3ML 5S S |
| 00173038501 |
VENTOLIN SOL INH 0.5% 5MG/ML 10ML |
| 00173038558 |
VENTOLIN SOL INH 0.5% 5MG/ML 20ML |
| 00173044200 |
ZOFRAN INJ 2MG/ML 20ML |
| 00173044202 |
ZOFRAN INJ 2MG/ML 2ML 5S |
| 00173046100 |
ZOFRAN INJ PRMXD 32MG/50ML |
| 00173046200 |
ZOFRAN INJ PRMXD 4MG/50ML |
| 00173056900 |
ZOFRAN ODT 4MG 5X2 30S |
| 00173057004 |
ZOFRAN ODT 8MG 5X2 10'S |
| 00173057000 |
ZOFRAN ODT 8MG 5X2 30S |
| 00173048900 |
ZOFRAN ORAL SOL 4MG/5ML 50ML |
| 00173068000 |
ZOFRAN TAB 24MG 1S |
| 00173044601 |
ZOFRAN TAB 4MG 100S |
| 00173044602 |
ZOFRAN TAB 4MG 100S UD |
| 00173044600 |
ZOFRAN TAB 4MG 30S |
| 00173044604 |
ZOFRAN TAB 4MG 3S |
| 00173044701 |
ZOFRAN TAB 8MG 100S |
| 00173044702 |
ZOFRAN TAB 8MG 100S UD |
| 00173044700 |
ZOFRAN TAB 8MG 30S |
| 00173044704 |
ZOFRAN TAB 8MG 3S |
| 00173095201 |
ZOVIRAX FOR INJECTION 1000MG 20ML 10S © |
| 00173099501 |
ZOVIRAX FOR INJECTION 500MG 10ML 10S (C# |
| 57894003001 |
C168J REMICADE 1PCK |
| 59676031201 |
PROCRIT 10,000 U/ML |
| 59676031002 |
PROCRIT 10000 U |
| 59676031001 |
PROCRIT 10000 U/ML |
| 00062740103 |
PROCRIT 10000U/ML AMG |
| 59676032001 |
PROCRIT 20,000 U/ML |
| 59676030202 |
PROCRIT 2000 U/ |
| 59676030201 |
PROCRIT 2000 U/ML 6 |
| 00062740201 |
PROCRIT 2000U/ML AMG |
| 59676030302 |
PROCRIT 3000 U/ |
| 59676030301 |
PROCRIT 3000 U/ML 6 |
| 00062740503 |
PROCRIT 3000 U/ML INST |
| 00062740501 |
PROCRIT 3000U/ML AMG |
| 59676030402 |
PROCRIT 4000 U/ |
| 59676030401 |
PROCRIT 4000 U/ML 6 |
| 00062740004 |
PROCRIT 4000 U/ML INST |
| 59676034001 |
PROCRIT 40000 U/ML |
| 00062740003 |
PROCRIT 4000U/ML AMG |
| 00062542307 |
PWRWNG PERMANEN |
| 59930151504 |
ALBUTEROL INHALATION SOLUTION |
| 59930164702 |
ALBUTEROL INHALATION SOLUTION |
| 59930150006 |
ALBUTEROL SULFATE INHAL. SOL. |
| 59930150008 |
ALBUTEROL SULFATE INHAL. SOL. |
| 59930151701 |
ALBUTEROL SULFATE SOLUTION |
| 59930151702 |
ALBUTEROL SULFATE SOLUTION |
| 59930155020 |
ALBUTEROL SULFATE SOLUTION |
| 00085123501 |
INTRON A FOR INJ MULTIDOSE PEN |
| 00085124201 |
INTRON A FOR INJ MULTIDOSE PEN |
| 00085125401 |
INTRON A FOR INJ MULTIDOSE PEN |
| 00085116801 |
INTRON A INJ 18MIU HSA FREE |
| 00085113301 |
INTRON A INJ 25MIU HSA FREE |
| 00085118401 |
INTRON A INJ 3MIU HSA FREE |
| 00085118402 |
INTRON A INJ 3MIU HSA FREE |
| 00085119101 |
INTRON A INJ 5MIU HSA FREE |
| 00085119102 |
INTRON A INJ 5MIU HSA FREE |
| 00085117901 |
INTRON A INJ PAK10MIU HSA FREE |
| 00085117902 |
INTRON A INJ PAK10MIU HSA FREE |
| 00085057102 |
INTRON A INJECTABLE 10MILLN IU |
| 00085057106 |
INTRON A INJECTABLE 10MILLN IU |
| 00085111001 |
INTRON A INJECTABLE 18MILLN IU |
| 00085028502 |
INTRON A INJECTABLE 25MILLN IU |
| 00085064703 |
INTRON A INJECTABLE 3MILLN IU |
| 00085064704 |
INTRON A INJECTABLE 3MILLN IU |
| 00085064705 |
INTRON A INJECTABLE 3MILLN IU |
| 00085012002 |
INTRON A INJECTABLE 5 MILLN IU |
| 00085012003 |
INTRON A INJECTABLE 5 MILLN IU |
| 00085012004 |
INTRON A INJECTABLE 5 MILLN IU |
| 00085012005 |
INTRON A INJECTABLE 5 MILLN IU |
| 00085053901 |
INTRON A INJECTABLE 50MILLN IU |
| 00085068901 |
INTRON A INJECTION 18 MIU |
| 00085092301 |
INTRON A SOL FOR INJ 10 MILLI |
| 00085076901 |
INTRON A SOL FOR INJ. 25MILLN |
| 00085095301 |
INTRON A SOLUTION 18MIU 3ML |
| 59930161001 |
PERPHENAZINE 16MG |
| 59930160501 |
PERPHENAZINE 8MG |
| 59930160502 |
PERPHENAZINE 8MG |
| 59930160301 |
PERPHENAZINE TABLETS |
| 59930160302 |
PERPHENAZINE TABLETS |
| 00085133601 |
PROVENTIL INHALATION SOLUTION |
| 00085020901 |
PROVENTIL SOLUTION .083MG/ML |
| 00085180601 |
PROVENTIL SOLUTION .083MG/ML |
| 00085020802 |
PROVENTIL SOLUTION 5MG/ML |
| 00085020852 |
PROVENTIL SOLUTION 5MG/ML |
| 00085125901 |
TEMODAR 100MG |
| 00085125902 |
TEMODAR 100MG |
| 00085125201 |
TEMODAR 250MG |
| 00085125202 |
TEMODAR 250MG |