A certified class of Xyrem buyers in 36 states has moved for preliminary approval of a $50 million settlement deal with Hikma Pharmaceuticals PLC to resolve antitrust claims. The class accuses Hikma of colluding with rival Jazz Pharmaceuticals to block generic competition for Jazz’s narcolepsy drug, Xyrem. The motion, filed Wednesday in the U.S. District Court for the Northern District of California, seeks to approve a settlement that offers fair and reasonable relief to the affected class members.
The proposed settlement will distribute a pro rata share of the $50 million to class members, with certain claims given greater weight. Class counsel also plans to seek up to $16.7 million in attorney fees, or one-third of the settlement, plus $4.5 million in costs.
According to the motion, this settlement is a significant portion of the estimated $422 million in damages both Jazz and Hikma could have faced if the case went to trial. Jazz Pharmaceuticals has already agreed to pay $145 million in a settlement, which is pending approval, and drugmakers Amneal Pharmaceuticals LLC and Lupin Pharmaceuticals Inc. have committed a total of $3.4 million, a deal already approved by the court.
The total potential settlement for the multidistrict litigation (MDL) now stands at $198.4 million. Hikma’s General Counsel, Sam Park, expressed satisfaction with the settlement, stating, “We are pleased to have reached an agreement that protects Hikma’s interests and provides clarity to our stakeholders. We are proud to have facilitated patients’ access to a lower-cost authorized generic version of this essential medicine, years ahead of its patent expiration.”
A hearing for both Hikma and Jazz’s motions for preliminary settlement approval is scheduled for May 15, 2025, at 1:30 p.m. in San Francisco.
The settlement would resolve claims against Hikma and its subsidiary in the ongoing MDL, filed in 2020. The case alleges that Jazz made illegal “reverse payments” to Hikma, the first company to attempt producing a generic version of Xyrem, and struck similar “pay-for-delay” deals with other generic-drug makers.
Judge Richard Seeborg granted class certification in May 2023 and previously approved a separate settlement under which Amneal and Lupin agreed to pay $3.4 million. The settlement excludes federal and state governmental entities, as well as certain insurer plaintiffs, including Humana Inc. and Molina Healthcare Inc.
The class is represented by Dena C. Sharp, Scott Grzenczyk, Tom Watts, and Jordan Isern of Girard Sharp LLP, and Michael M. Buchman of Motley Rice LLC. Hikma Pharmaceuticals is represented by Jack E. Pace III, Jeremy Kent Ostrander, and Kathryn J. Mims of White & Case LLP.
