Drugmaker Eli Lilly has settled a class-action lawsuit filed six years ago after being accused of systematically overpricing insulin.
The company has agreed to pay $13.5 million and maintain the cap on out-of-pocket costs for insulin users for four more years.
Under the settlement agreement, those who do not qualify for the $35-a-month cap, such as those who no longer use Eli Lilly insulin or are enrolled in Medicare and Medicaid, can access the $13.5 million fund.
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This fund will also cover administrative costs and fees for the plaintiffs’ attorneys.
According to the American Diabetes Association, around 7 million Americans rely on insulin daily to manage their diabetes.
However, the prices of the most popular insulin types have tripled over the past decade.
The suit highlighted the struggles faced by insulin users, including extreme measures like self-starvation and intentionally inducing ketoacidosis to obtain insulin from emergency rooms.
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The settlement, which still requires approval from the US District Court for the District of New Jersey, does not include an admission of liability or wrongdoing by Eli Lilly.
A company spokesperson said: “The settlement contains no admission of liability or wrongdoing by Lilly.”
“The agreement is a reflection of our continued commitment to close gaps in the U.S. health-care system for people with diabetes.”
Earlier this year, Eli Lilly announced a 70 percent price reduction for its commonly prescribed insulin.
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The class covered by the lawsuit includes anyone in the US who paid for any Lilly insulin product between January 1, 2009, and the final approval order for the settlement.
Eligible insulin buyers can file claims forms on the settlement website.
Upon preliminary approval, the plaintiffs’ attorneys plan to subpoena the six largest pharmacy benefit managers and the seven largest retail pharmacy chains in the US to gather transactional data for verifying settlement claims.
Steve Berman, the court-appointed co-lead counsel for the insulin buyers said the settlement and four-year cap are estimated to “save these consumers $500 million in payments for their insulin over the four-year period.”
