Drug Company May Be Facing Class Action Suit
New York-based Pfizer Inc., the world's largest drugmaker, may find itself facing a class-action lawsuit levied by a number of health insurers charging that the company’s Warner-Lambert division improperly marketed the epilepsy drug Neurontin for unapproved uses, according to a U.S. district judge. The drug is sold generically under the name gabapentin by more than a dozen drugmakers.
Attorneys representing consumers and third-party payers, including insurance companies and union funds, hoping to work as a group, are asking Judge Patti Saris for permission to join forces and pursue their suits against Pfizer. Saris said that while a class action for consumers was unlikely she may grant such status for the insurers.
The lawsuits claim that Warner-Lambert promoted Neurontin for uses not approved by the U.S. Food and Drug Administration, in violation of FDA rules, sparking a huge increase in sales of the drug. Jim Rouhandeh, an attorney for Pfizer, told the judge that plaintiffs couldn't connect marketing practices to the spike in sales.
“It's hard to me to believe on a third-party payer basis that you couldn't prove causation,'' the judge replied, saying “The spikes are off the chart.”
Saris is holding off on a decision until after the plaintiffs provide an expert's report in August, but says approval of a consumer class action is doubtful. “The case law is getting tougher and tougher for the individual consumers,” she told plaintiffs' attorneys.
Pfizer has argued the lawsuits aren't suitable for class- action treatment. A class action, which is less expensive for plaintiffs to pursue, gives them more leverage in seeking a settlement.
Saris rejected the class action last year while allowing the plaintiffs the right to restructure the proposed class and refile the case. The plaintiffs modified their request in December by splitting consumers into sub-classes, depending on the use prescribed.
The third-party payers are seeking reimbursement for money spent on prescriptions for bipolar disorder, migraine and pain. Customers are seeking money spent on co-payments for these prescriptions.
Pfizer shelled out $430 million four years ago to settle off-label marketing allegations involving Neurontin by the U.S. Justice Department. Sales of the drug increased from 15 percent off-label in 1994 to 94 percent in 2002, according to the government, totaling $2.3 billion in 2002.
Published on April 17, 2008
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