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Restasis Antitrust Settlement (Direct Purchasers)

The court granted final approval in October 2020, and the $51.25 million fund was distributed to direct purchasers using pre-populated claim forms based on Allergan's own sales data.

Case record

Case: In re Restasis (Cyclosporine Ophthalmic Emulsion) Antitrust Litigation
Case no.: 1:18-md-02819-NG (MDL No. 2819)
Court: U.S. District Court for the Eastern District of New York, Brooklyn
Defendant: Allergan, Inc.
Administrator: RG/2 Claims Administration
Settlement fund: $51.25 million

The case

What this settlement was about

Direct purchasers, drug wholesalers and distributors, alleged that Allergan illegally delayed generic competition for Restasis, its blockbuster dry-eye drug that generated well over $1 billion a year. The alleged tactics included procuring patents through fraud on the Patent Office, filing serial sham citizen petitions with the FDA, and one of the most notorious patent maneuvers in pharmaceutical history: "selling" the Restasis patents to the Saint Regis Mohawk Tribe in 2017 and leasing them back, hoping tribal sovereign immunity would shield them from challenges.

Courts ultimately rejected the tribal immunity tactic, and Allergan, denying all wrongdoing, agreed to pay the direct purchaser class $51.25 million. Judge Nina Gershon granted final approval in October 2020 and awarded about $16.4 million in attorneys' fees from the fund.

Importantly, this settlement covered only businesses that bought Restasis directly from Allergan. Consumers and insurers had a separate $30 million end-payor settlement with its own website, and major pharmacy chains, CVS, Walgreens, Rite Aid, Kroger, Albertsons, and HEB, were carved out because they pursued their own suits. The first generic Restasis finally launched in February 2022.

The class

Who was covered

All persons or entities that purchased Restasis in the United States or its territories directly from Allergan at any time from May 2014 through February 16, 2020, primarily drug wholesalers and distributors. Excluded: Allergan affiliates, government entities, and the large retailers that filed their own suits.

What class members could receiveA pro rata share of the net fund calculated from Allergan's transactional sales data for each class member's direct purchases. Claim forms pre-populated with that data were sent to class members after final approval.
Proof requirementClaims required supporting documentation.

Docket timeline

How the settlement unfolded

2017
Patents transferred to tribe
Allergan "sold" its Restasis patents to the Saint Regis Mohawk Tribe and leased them back to invoke sovereign immunity, a tactic courts rejected.
2018
MDL consolidated
Antitrust suits were consolidated before Judge Nina Gershon in the Eastern District of New York.
August 3, 2020
Exclusion deadline
Direct purchasers who wanted to pursue their own claims had to opt out.
October 2020
Final approval
Approval followed the September 29, 2020 fairness hearing; $16.4 million in fees were awarded from the fund.
Fall 2020 onward
Claims and distribution
Pre-populated claim forms were sent to class members and the fund was distributed.
February 2022
First generics launch
Generic Restasis finally reached the market.

Questions people still ask

Frequently asked questions

Could consumers claim from this Restasis settlement?

No. This settlement covered only direct purchasers, wholesalers and distributors that bought Restasis directly from Allergan. Consumers and insurers had a separate $30 million end-payor settlement with its own website and administrator.

How were direct purchaser payments calculated?

Each class member's pro rata share was calculated from Allergan's own transactional sales data. Claim forms pre-populated with that data were mailed and emailed after final approval in October 2020.

What did Allergan allegedly do wrong?

The class alleged Allergan kept generic Restasis off the market through patents procured by fraud, sham FDA citizen petitions, and transferring its patents to the Saint Regis Mohawk Tribe to hide behind tribal sovereign immunity, inflating the prices direct purchasers paid.

Why were CVS, Walgreens, and other chains excluded?

Major pharmacy chains, CVS, Rite Aid, Walgreens, Kroger, Albertsons, and HEB, were carved out of the class because they pursued their own coordinated opt-out lawsuits against Allergan.

When did generic Restasis become available?

The first generic versions of Restasis launched in February 2022, years after they allegedly would have arrived absent Allergan's conduct.

Sources for this record

Official site restasisantitrustsettlement.com has been retired. Record preserved by TapClaim.