Impax Laboratories Agrees to Settle Antitrust Lawsuit

A proposed $20 million settlement has been reached in a class action lawsuit involving the antibiotic drug Solodyn. The lawsuit claims that Medicis Pharmaceutical Corp., Impax Laboratories, Inc., Lupin Limited, Lupin Pharmaceuticals Inc., and Sandoz Inc. (the "Defendants") violated state competition (i.e. antitrust and consumer protection) and unjust enrichment laws by agreeing not to compete with each other and keeping lower-cost generic versions of Solodyn off the market. The Defendants deny this.

To settle the lawsuit, Impax Laboratories, Inc. has agreed to pay $20 million into a Settlement Fund to settle all claims in the lawsuit brought on behalf of consumers and health insurers known as third-party payors. This settlement is in addition to the $23 million settlement recently announced with Medicis Pharmaceutical Corp.

Class Counsel will ask the Court to award attorneys' fees in an amount not to exceed one-third of the Settlement Fund, plus interest, litigation expenses and incentive payments to the Class Representatives.  After these deductions, the remainder of the Settlement Fund will be distributed pro rata to Class Members who file a valid claim form. The amount of money you are eligible to receive will depend on how much you (and other consumers) paid for Solodyn or generic versions of Solodyn.