Attorney General Andy Beshear today said nearly 700 Kentuckians will receive a portion of the nearly $500,000 settlement his office secured with a Pennsylvania-based pharmaceutical company over its anticompetitive conduct to protect profits from its sleep disorder drug.
The 2016 settlement ends a multistate investigation into Cephalon, a wholly owned subsidiary of Teva Pharmaceuticals, alleging its anticompetitive actions delayed generic versions of Provigil from entering the market for several years.
A total of 696 Kentuckians who filed a claim will receive a portion of roughly $493,000. As part of the settlement, Kentucky’s Medicaid program will receive nearly $500,000.
“As attorney general, I am committed to pursuing anyone who defrauds consumers and our government,” Beshear said. “Kentuckians benefiting from this settlement should be receiving their restitution checks in the mail this month.”
Kentuckians eligible to file claims were those who paid for the brand-name drug Provigil or its generic Modafinil from June 24, 2006, to March 31, 2012.
According to the settlement, the company’s anticompetitive actions delayed generic versions of Provigil, used to treat excessive sleepiness caused by sleep apnea, narcolepsy or shift work sleep disorder, from entering the market for several years.
As patent and regulatory barriers that prevented generic competition to Provigil neared expiration, the company intentionally defrauded the federal government to secure an additional patent.
Bordering states participating in the Cephalon settlement received:
· Illinois: 1,826 claims with $1.3 million in restitution
· Missouri: 1,736 claims with $1.1 million in restitution
· Ohio: 2,015 claims with $1.6 million in restitution
· Tennessee: 990 claims with $933,000 in restitution
· Virginia: 1,009 claims with $795,000 in restitution
· West Virginia: 348 claims with $292,000 in restitution
Besides Cephalon, Beshear has taken action against several companies to protect Kentucky families from being ripped off – Western Union, Target, Bryant Heating and Cooling Co. Inc., Mortgage Electronic Registration Systems Inc., or MERS; Nationwide Mutual Insurance Company; Johnson & Johnson; a Johnson & Johnson subsidiary; Bristol-Myers Squibb; General Motors; Hyundai-Kia and Volkswagen.