Labaton Sucharow Files Antitrust Class Action Lawsuit Arising from Xyrem Pay-for-Delay Scheme

NEW YORK — Labaton Sucharow LLP announces that on June 30, 2020, it filed a complaint, UFCW Local 1500 Welfare Fund v. Jazz Pharmaceuticals Ireland Limited, et al., No. 1:20-cv-03852 (N.D. Ill.) (the “Action”), on behalf of Plaintiff UFCW Local 1500 Welfare Fund against Defendants Jazz Pharmaceuticals Ireland Limited, Jazz Pharmaceuticals, Inc. (together, “Jazz”), Roxane Laboratories, Inc., Hikma Pharmaceuticals PLC, Eurohealth (USA), Inc., and West-Ward Pharmaceuticals Corp. (collectively, “Roxane”) arising from an unlawful scheme between Jazz and Roxane to delay the entry of generic competition for Jazz’s blockbuster medication Xyrem®.

Xyrem is indicated to treat two common symptoms associated with narcolepsy: excessive daytime sleepiness and cataplexy.  While Xyrem treats fewer than 200,000 Americans per year, it has become a commercial success for Jazz, generating billions of dollars in sales.

As the end of Jazz’s exclusivity over Xyrem neared, Jazz embarked on a pattern of anticompetitive behavior to slow down and ultimately eliminate the competitive threat from several generic manufacturers, including Roxane.  To protect its market share, Jazz filed serial and abusive patent infringement lawsuits and abused regulatory processes in order to delay FDA approval of competing generic versions.  On April 5, 2017, when Roxane was finally in a position to launch its generic Xyrem, Defendants entered into an unlawful pay-for-delay agreement that preserved Jazz’s monopoly over Xyrem for an additional six years.

The Action asserts claims under the Sherman Act, as well as state law, on behalf of persons or entities who purchased or reimbursed for purchases of Xyrem, beginning at least as early as April 5, 2017.  The Action seeks to restrain Defendants’ anticompetitive conduct and to pursue damages to compensate those who have overpaid, and will continue to overpay, for Xyrem.

If you purchased or reimbursed for purchases of Xyrem, you may be a member of the Class.

If you have any questions about this lawsuit, you may contact Labaton Sucharow partner Gregory Asciolla at (800) 321-0476, or via email at gasciolla@labaton.com.

Labaton Sucharow represents businesses, investors, and consumers in challenges to anticompetitive conduct taking place in the United States and abroad.  Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications.  Our offices are located in New York, NY, Wilmington, DE, and Washington, D.C.  More information about Labaton Sucharow is available at www.labaton.com.

You can view a copy of the complaint here.