The Allegations: Reverse Payments and Market Blockades
At the heart of the litigation were claims that Jazz entered into reverse payment agreements — effectively, cash incentives to delay competition — with Hikma Pharmaceuticals, the first company to file for approval to sell a generic version of Xyrem. Similar deals with later filers were also alleged, locking out alternatives in what plaintiffs claimed was an effort to illegally preserve a monopoly.
The legal battle — filed as In re: Xyrem (sodium oxybate) Antitrust Litigation, case number 3:20-md-02966 — is being handled in the U.S. District Court for the Northern District of California under Judge Richard Seeborg.
Class Action Landscape Shifts as Players Exit the Stage
Back in May 2023, Judge Seeborg certified the class and gave the green light to settlements involving Amneal Pharmaceuticals LLC and Lupin Pharmaceuticals Inc., who collectively agreed to pay $3.4 million to bow out. That left Jazz and Hikma standing alone in the litigation crosshairs — until this week.
Jazz’s decision to settle follows reports of a Zoom hearing last month, during which Jazz and a certified insurer class revealed they’d reached a settlement-in-principle. However, Hikma, along with opt-out plaintiffs like Humana Inc. and Molina Healthcare Inc., remain active players in the legal fray.
