Attorney General Salazar Announces Settlemant Fund For Colorado Consumers In Pharmaceutical Case

Denver – Attorney General Ken Salazar announced today that Colorado purchasers of a prescription drug for hypertension or high blood pressure, Cardizem® CD, or its generic equivalents, may be entitled to payment from a $21 million consumer settlement fund. The fund was created as part of a proposed 50-state settlement in the antitrust lawsuit against Aventis Pharmaceuticals Inc. and Andrx Corporation. The states have entered into a settlement agreement to resolve antitrust allegations concerning the drug.

The case alleges that the drug makers violated antitrust laws and overcharged consumers purchasing Cardizem CD or its generic equivalents. Defendants have denied any wrongdoing or liability.

In January 2003 the states announced the settlement in which Aventis and Andrx would pay $80 million into a restitution fund to compensate consumers, state agencies, and insurance companies that overpaid for Cardizem CD. The settlement provided approximately $21 million to reimburse consumers some portion of what they paid to purchase the drug.

Consumers who purchased Cardizem CD or its generic equivalents from January 1, 1998 through January 29, 2003 can file a claim for recovery. Consumer claims must be filed before September 23, 2003. Claim registrations and complete information can be obtained at www.cardizemsettlement.com or by calling 1-800-372-2406. A nationwide effort to contact consumers who bought these drugs was launched on June 23rd.

“Many consumers who were forced to pay too much for Cardizem CD now have an opportunity to recover some of the money they spent,” said Colorado Attorney General Ken Salazar. “Everyone who bought this drug between the years 1998 and 2003 should check the website or call the 800-number to find out if they are eligible.”

The proposed settlement is subject to court review. Affected consumers who do not wish to participate in the proposed settlement must exclude themselves in writing before September 22, 2003, or they will be bound by the rulings of the court in this case. The proposed settlement also provides money for third party payers, governmental purchases, the costs of publicizing and administrating the settlement, and litigation costs and fees. The settlement is in addition to a $110 million settlement reached earlier in private litigation between the companies and drug wholesalers involving the same alleged violations. In total, the drug companies will be required to pay over $190 million.

Colorado governmental entities are to receive approximately $20,000 of the settlement. Through the claims process, it is estimated that the total recovery to Colorado consumers could be approximately $316,000.