Introduction
The lawsuit MSP Recovery Claims Series LLC v. Amgen, Inc. is a significant case that involves allegations of a price-fixing scheme and violations of state and federal bribery laws by pharmaceutical giant Amgen and its subsidiaries. Here, we will delve into the key aspects of the litigation, including the parties involved, the factual background, procedural history, and the legal implications.
The Parties Involved
- MSP Recovery Claims, Series LLC (MSP): The plaintiff is a series limited liability company that specializes in purchasing claims from insurers participating in the Medicare system. MSP acts on behalf of these insurers to recover funds that are allegedly owed due to various violations by pharmaceutical companies[3].
- Amgen Inc. (Amgen): The primary defendant is a pharmaceutical manufacturer known for producing drugs such as Sensipar and Kyprolis, which are used to treat hyperparathyroidism and multiple myeloma, respectively[3].
- Onyx Pharmaceuticals, Inc. and Onyx Therapeutics, Inc.: These are wholly owned subsidiaries of Amgen, involved in the development and marketing of the drugs in question[3].
Factual Background
The lawsuit centers around an alleged scheme by Amgen and its subsidiaries to artificially inflate the prices of Sensipar and Kyprolis. Here are the key points:
- Price Fixing and Bribery Allegations: MSP alleges that Amgen and its subsidiaries executed a scheme to increase the quantity dispensed and the unit price of these drugs. This was allegedly done through bribes and other illegal means, violating state and federal bribery laws[3].
- Use of Patient Assistance Programs: The complaint highlights that Amgen used patient assistance programs, such as the Patient Access Network Foundation (PANF) and the Chronic Disease Fund (CDF), as conduits to pay the copay obligations of Medicare patients. This practice was previously targeted by the Department of Justice (DOJ), which settled with Amgen but only recovered monies for Medicare's portion of the cost-sharing obligation, leaving out payments made by MSP's assignors[3].
Procedural History
- Filing of the Complaint: MSP filed its complaint on April 25, 2020, in the United States District Court for the Central District of California[3].
- Motions to Dismiss: Amgen, Onyx Pharmaceuticals, and Onyx Therapeutics filed motions to dismiss the complaint. Additionally, PANF and CDF filed a request for judicial notice. The court granted the motions to dismiss in part and also granted the request for judicial notice[3].
Legal Implications
- State and Federal Bribery Laws: The lawsuit alleges violations of both state and federal bribery laws. The court's decision on these allegations will set a precedent for how pharmaceutical companies can interact with patient assistance programs and whether such interactions constitute bribery[3].
- Medicare and Medicaid Reimbursement: The case touches on the complex issue of Medicare and Medicaid reimbursement. MSP's claims are based on the idea that the inflated prices and illegal practices resulted in overpayments by Medicare and its assignors, which MSP seeks to recover[3].
- Antitrust Implications: Although the primary focus is on bribery and price-fixing, there are underlying antitrust implications. The alleged scheme to raise prices could be seen as anti-competitive behavior, which is a critical aspect of antitrust law[2].
Court's Decision
The court's decision to grant the motions to dismiss in part indicates that some of the claims may not meet the legal standards required for them to proceed. However, the court's acceptance of some claims suggests that there is sufficient evidence to warrant further litigation. The decision also highlights the importance of judicial notice in establishing certain facts that are not in dispute[3].
Key Takeaways
- Complexity of Pharmaceutical Pricing: The case underscores the complexity and potential for abuse in pharmaceutical pricing, particularly when involving patient assistance programs.
- Role of MSP Recovery Claims: MSP's role in recovering funds on behalf of Medicare insurers highlights the importance of third-party entities in ensuring compliance with healthcare laws.
- Legal Precedent: The outcome of this case will set important precedents for future litigation involving pharmaceutical companies and their interactions with patient assistance programs.
FAQs
What is the main allegation against Amgen in the lawsuit?
The main allegation is that Amgen and its subsidiaries engaged in a scheme to artificially inflate the prices of Sensipar and Kyprolis, violating state and federal bribery laws.
Who are the parties involved in the lawsuit?
The parties include MSP Recovery Claims Series LLC as the plaintiff, and Amgen Inc., Onyx Pharmaceuticals, Inc., and Onyx Therapeutics, Inc. as the defendants.
What role did patient assistance programs play in the alleged scheme?
Patient assistance programs like PANF and CDF were allegedly used as conduits to pay copay obligations of Medicare patients, which was part of the scheme to inflate drug prices.
What was the outcome of the motions to dismiss filed by the defendants?
The court granted the motions to dismiss in part and also granted the request for judicial notice filed by PANF and CDF.
What are the broader implications of this lawsuit?
The lawsuit has implications for antitrust law, Medicare and Medicaid reimbursement, and the regulation of pharmaceutical pricing practices.
Sources
- United States Court of Appeals for the Eleventh Circuit - DRI White Paper: MSP Recovery Claims, Series LLC v. Ace American Insurance Company[1].
- PacerMonitor - MSP Recovery Claims Series LLC v. Amgen, Inc. et al[2].
- Casetext - MSP Recovery Claims, Series LLC v. Amgen Inc.[3].
