$55-million Antitrust Settlement with Pharmaceutical Company over Cancer Drug Reached

Attorney General Ben Chandler today announced a final resolution with Bristol – Myers Squibb Company that would settle a multistate antitrust lawsuit involving the cancer-fighting drug, Taxol.

The Commonwealth of Kentucky, in conjunction with 49 other states and U.S. territories, will recover $55 million to settle the states’ claims for damages, penalties and individual consumer compensation. In addition, Bristol-Myers Squibb has agreed to provide free quantities of Taxol worth approximately $7.5 million, to approved health care facilities, provided recipients meet certain eligibility requirements.

“This is a significant victory for the Commonwealth. This settlement will help to compensate consumers, as well as the Kentucky Medicaid Program, who overpaid for this drug,” said Attorney General Ben Chandler.

Kentucky, along with 31 other states sued BMS on June 4th, 2002 alleging the company violated antitrust laws by engaging in an illegal scheme to protect its monopoly for the cancer-fighting drug Taxol and keep lower-priced generic drugs off the market. Seventeen additional states have joined the settlement. Bristol- Myers Squibb has also agreed to strong injunctive relief for ten years to prevent it from engaging in such anti-competitive conduct in the future.

The settlement was filed today with U.S. Federal District Court Judge Emmet

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