Consumers May Apply for Refund for Overpriced Alzheimer Drugs

Consumers who purchased certain generic medications to treat Alzheimer's disease may be entitled to refunds from a $100 million nationwide antitrust settlement with Mylan Labaoratories, according to Illinois Attorney General Jim Ryan.

Illinois, 32 other attorneys general and the Federal Trade Commission filed a lawsuit in 1998 charging that Mylan and other defendants conspired to inflate prices for the generic drugs lorazepam and clorazepate, used to treat Alzheimer's disease, by more than 2,000 percent.

"The cost of prescription drugs is an important issue in this state and my office will continue its aggressive pursuit of any company that illegally exploits consumers in need of medicine," said Ryan. "In this case, the exploitation was particularly egregious because the defendants dramatically and illegally raised prices on drugs to treat Alzheimer's disease."

Of the total, $72 million is to be set aside to provide restitution to those affected by the inflated pricing. The remaining $28 million will be used to reimburse states for purchases of the drug, and costs of the investigation and litigation.

Consumers who bought the drugs from January 1998 through December 1999 and did not receive insurance reimbursement may be entitled to benefit from the settlement. Consumers need to file a claim by September 29, 2001.

Other sources: Illinois Attorney General's Office