Viatris Inc, formerly known as Mylan, announced on Monday that it has agreed to pay $264 million to settle a class-action lawsuit alleging that it engaged in a plan to delay generic competition to its EpiPen allergy medication.
The proposed settlement would end litigation that began in 2016 in response to public criticism over Mylan's decision to raise the list price for a pair of EpiPens to $600 from $100 in 2008, sparking a debate about growing medicine prices in the United States.
The action, brought on behalf of customers and third-party payers such as insurers, was scheduled to go to trial this month until recently, with the plaintiffs demanding $1 billion in damages, a number that might be doubled under some state antitrust laws.
The complaint accused Mylan and Pfizer, which developed the EpiPen, of anticompetitive behavior that allowed them to maintain a stranglehold on the market for the devices.
However, U.S. District Judge Daniel Crabtree in Kansas City rejected part of Mylan's action last year, leaving only a claim relating to a 2012 patent litigation settlement with generic manufacturer Teva Pharmaceutical Industries Ltd.
According to Viatris, the settlement, which is still subject to court approval, does not include any acknowledgment of liability.
