AZ Reaches $20M Settlement in Nexium Class Action Lawsuit

Boston,MA: A proposed settlement has been reached with AstraZeneca Pharmaceuticals LP (“AstraZeneca”), the maker of Nexium®, in a consumer fraud class action lawsuit pending in Suffolk County Superior Court in the Commonwealth of Massachusetts (“Lawsuit”) : Commonwealth Care Alliance, et al. vs. AstraZeneca Pharmaceuticals L.P., et al., Case No. 05-0269 BLS.

The Lawsuit claims that AstraZeneca deceptively marketed Nexium®. AstraZeneca denies any wrongdoing and has consistently maintained that Nexium® is supported by strong clinical studies, and that the promotion of Nexium® has always been truthful, balanced, and fair.

Although the Court has not ruled on the merits of the Plaintiffs’ claims, the parties have agreed to settle this Lawsuit. Based on Class Counsel’s extensive investigation of the facts and the law relevant to the Lawsuit, the Plaintiffs and Class Counsel have concluded that the settlement with AstraZeneca is in the best interests of the settlement Class. The proposed Settlement is not an admission of wrongdoing or an indication that any law was violated.

AstraZeneca will pay $20 million to settle the Plaintiffs’ claims in the Settlement. After deducting certain amounts, including amounts approved by the Court for the settlement notice and claims administration, payment of attorneys’ fees, reimbursement of Plaintiffs’ litigation expenses, and service awards to settlement Class Representatives, the net fund will be distributed in cash to settlement Class members who submit valid claims. If Class members’ claims exceed the amount available, payments will be reduced on a proportional basis so that all valid claims can be paid. If there is any money left after paying all valid claims, the excess funds will be distributed as cy pres payments to charities agreed to by the parties and approved by the Court.

Generally, you are a member of the settlement Class if you are a person or entity who, during the period from March 1, 2001, through February 6, 2013: (a) purchased Nexium® in or from Massachusetts, or (b) reimbursed or paid for Nexium® dispensed in Massachusetts, or (c) reimbursed or paid for Nexium® purchased by mail order from Massachusetts.

You are not a member of the settlement Class if you are a government entity (except for government-funded employee benefit funds), you purchased Nexium® for purposes of resale (but solely to the extent of such purchases for purposes of resale), or you are the Judge assigned to this action and any member of the Judge’s immediate family.

The settlement Class includes both consumers and entities, known as “Third-Party Payors,” that purchased, reimbursed, or paid for Nexium®.

To qualify for payment from the Settlement, you must timely submit a completed Claim Form. Claim Forms must be postmarked, faxed, sent electronically in PDF format, or submitted online by August 30, 2013.

If you have comments about, or objections to, any aspect of the Settlement, including the requested attorneys’ fees or service awards, you may express your views to the Court. Refer to the Full Notice for more information on how to express your views to the Court.

If you do nothing, you will not receive a payment from the Settlement, and you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against AstraZeneca about the legal issues in the Lawsuit.

The Court will hold a Fairness Hearing in Boston, Massachusetts on July 13, 2013. The hearing may be moved to a different date or time, so check this website for updated information.

The Fairness Hearing will determine whether or not the Settlement and the plan for distributing it are fair, adequate, and reasonable, among other things. For complete information on the proposed settlement, to download forms and note important dates and contact information, visit:

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Reader Comments

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I have been on Nexium for years and I got out of bed and my bone in my left leg broke!

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