Proposed Elanco Advantix Settlement: Claims Not Open Yet

If you've treated a dog or cat with a squeeze-on flea and tick product, this case could apply to you. Lawsuits allege that Elanco, maker of the imidacloprid-based Advantix, teamed up with major pet retailers to block cheaper generic alternatives from reaching shelves, driving up what pet owners paid.

According to the claims, Elanco was the sole seller of imidacloprid flea and tick treatments from 2002 until generics entered the market in 2017. Once that happened, the lawsuits allege Elanco took two steps to protect its position. First, it allegedly offered Chewy, Petco, PetSmart, PetMed Express, and Petsense discounted pricing in return for keeping generic imidacloprid products off their shelves. Second, it allegedly imposed a minimum advertised price rule, preventing those retailers from advertising Advantix below competitors' prices. Together, the plaintiffs argue, these practices functioned as exclusive dealing and price-fixing that left consumers paying more. These remain allegations, no court has found that Elanco or the retailers violated the law.

To resolve the case, the defendants have proposed a $9,275,000 settlement fund. Elanco would contribute $6,750,000; Petco and PetSmart $700,000 each; Chewy $600,000; PetMed Express $275,000; and Petsense $250,000. Before any money reaches consumers, the fund must first cover attorneys' fees of up to 35%, litigation costs, service awards for the two lead plaintiffs, and administrative and notice expenses. Any money left unclaimed would not revert to the defendants.

Beyond the payout, the settlement calls for changes to business practices: Elanco would halt its exclusivity discount for five years, and each retailer would stop receiving it for the same period, except Chewy, where the halt would last two years. Each retailer would also agree to consider stocking a competing imidacloprid product from another manufacturer for one year, unless it already does.

If you have online order histories or loyalty program records documenting your purchases, it's worth holding onto them now, submitting valid proof of purchase could let you claim more than the amount available without one.