If you made or are obligated to make percentage co-payment, either through private insurance or as a Medicare Part B recipient, for the GlaxoSmithKline Drugs:

These Class Action Lawsuits May Affect Your Rights.

Update:  The settlement was approved on July 19, 2007. 
Click here to read the order

There is an Approved Settlement with GlaxoSmithKline (“GSK”), one of the Defendants in a class action lawsuit in the U.S. District Court for the District of Massachusetts. The name of the lawsuit is In re: Pharmaceutical Average Wholesale Price Litigation, Docket No. 01-CV-12257-PBS, MDL No. 1456.

What is this Lawsuit About?

The lawsuit claims that certain drug companies reported false and inflated average wholesale prices (“AWP”) for certain types of outpatient drugs. The reported AWPs are often used to set prescription drug prices that are paid by Medicare, consumers and insurers. The lawsuit asks the Court to award money damages to some people who paid or made co-payments for the drug.

Who is in the Classes?

There are two sub-Classes for individual consumers who paid for the GSK Covered Drugs listed above.

• You are a member of Medicare Co-Payment Class if:
  
  You made or are currently obligated to make a percentage co-payment under Medicare Part B for any of the GSK Covered Drugs listed above (or are an heir to someone who made such a co-payment) from January 1, 1991 to January 1, 2005. You are excluded from this Class if you made flat co-payments, or you were reimbursed or have the right to be reimbursed in full for your co-payments
  
  
  
• You are a member of the Private Payor Class if:
  
  You paid (or are currently obligated to pay) for any of the GSK Covered Drugs listed above outside of Medicare Part B, from January 1, 1991 to August 10, 2006 and
  
  Your payment was (a) for the full amount out-of-pocket, or (b) your payment was a percentage co-payment. You're not included in the Class if you paid a fixed or flat co-payment.
  
  

What are the Terms of the Settlement?

GSK has agreed to pay $70 million to settle these and other related claims. A $4.5 million payment to certain State Attorneys General, as well as attorneys' fees and the costs of administering the Proposed Settlement, will be deducted from the Settlement Fund before distributions to Class Members.

Thirty percent (30%) of the remaining fund will be distributed in cash to consumers who make valid claims. Seventy percent (70%) of the remaining fund will be set aside to pay the claims of insurer Class Members who submit a valid claim and other insurers who are members of a separate and independent group of Third-Party Payors (referred to as the “Independent Settling Health Plans” or “ISHPs”) who have agreed to settle their claims against GSK for a portion of the Settlement funds.

Who Represents Me?

The Court has appointed attorneys to represent the Classes. Class Counsel will request that the Court award attorneys' fees not to exceed thirty-three and a third percent (33.33%) of the Proposed Settlement Fund, plus reimbursement of expenses. You may hire your own attorney, if you wish. However, you will be responsible for that attorney's fees and expenses.

Summary of Your Rights and Choices