NATIONAL EMPLOYEES HEALTH PLAN v. JOHNSON & JOHNSON

CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 15, 2023
Docket2:17-cv-04326
StatusUnknown

This text of NATIONAL EMPLOYEES HEALTH PLAN v. JOHNSON & JOHNSON (NATIONAL EMPLOYEES HEALTH PLAN v. JOHNSON & JOHNSON) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
NATIONAL EMPLOYEES HEALTH PLAN v. JOHNSON & JOHNSON, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

IN RE REMICADE ANTITRUST CIVIL ACTION LITIGATION No. 17-cv-04326

MEMORANDUM MARSTON, J. March 15, 2023

This is a consolidated, putative class indirect-purchaser antitrust action in which Named Plaintiffs Local 295 Employer Group Welfare Fund and National Employees Health Plan allege that Defendants Johnson & Johnson and Janssen Biotech, Inc. engaged in anticompetitive conduct related to their infliximab biologic, Remicade, in violation of federal and state antitrust laws and state consumer protection laws. Presently before the Court is Plaintiffs’ Motion for Final Approval of Settlement, Plan of Allocation and Distribution, Award of Attorneys’ Fees and Expenses, and Service Awards (the “Motion”). (Doc. No. 195.) The Court held a final approval hearing on February 27, 2023. For the reasons below, the motion is granted. I. Background The Court set forth the facts of the background litigation and Settlement Agreement at length in its August 2, 2022 Memorandum preliminarily approving the Settlement (see Doc. No. 177) and therefore need not repeat them here.1 Below, the Court outlines the additional facts and

1 In short: Certain exclusions aside, the Settlement Class consists of “[a]ll persons and entities in the United States and its territories who indirectly purchased, paid and/or provided reimbursement for some or all of the purchase price of Defendants’ infliximab between April 5, 2016 and February 28, 2022.” (Doc. No. 172-4 at ¶ 1.6.) Defendants will deposit $25 million into a Settlement Fund for the benefit of the Class. (Id. at 5.) The Net Settlement Fund (which is the Settlement Fund, less attorneys’ fees and expenses, service awards, settlement administration costs, and taxes) will be distributed to the Class pursuant to the (now Amended) Plan of Allocation and Distribution. (See Doc. No. 177 at 4–5; Doc. Nos. 202, 204.) procedural history that have arisen since then. A. Preliminary Approval and the Notice Period On August 2, 2022, the Court preliminarily approved the Settlement, the Notice Plan, and the Plan of Distribution and Allocation, and it appointed Gilardi & Co., LLC (“Gilardi”) to serve as the Settlement Administrator. (Doc. Nos. 177, 178.)

Gilardi commenced the Notice Plan on August 30, 2022. (Doc. No. 195-2 at ¶ 10.) “The Notice Plan used a combination of individual mailed notice and paid notice placements in industry-related trade media to reach the third-party payor (‘TPP’) portion of the Settlement Class, as well as a combination of notice placements in a well-read consumer publication and digital notices placed on a variety of websites to reach the consumer portion of the Settlement Class.” (Doc. No. 195-4 at ¶ 5.) “The Notice Plan reached virtually all TPP Settlement Class members and approximately 80% of likely consumer Settlement Class members.” (Id.) TPP Mailing. On September 9, 2022, Gilardi mailed the Postcard Notice to 23,509 TPP entities contained in its proprietary database via the United States Postal Service (“USPS”). (Id.

at ¶ 9.) Before mailing the notice, the addresses were checked against the National Change of Address (“NCOA”) database, certified via the Coding Accuracy Support System (“CASS”), and verified through Delivery Point Validation (“DPV”). (Id. at ¶ 10.) Notices that were returned as undeliverable were re-mailed to any address available through postal service information. (Id. at ¶ 11.) Mailings that were returned and “did not contain an expired forwarding order with the new address indicated,” were “researched through standard skip tracing” and notice was “re- mailed if a new address was obtained.” (Id.) Gilardi also emailed the contents of the Postcard Notice to 1,797 TPP entities with available email addresses. (Id. at ¶ 9.) TPP Paid Media. Gilardi also advertised on trade websites and in digital trade e- newsletters. (Id. at ¶ 13.) Specifically, Gilardi had “approximately 75,000 impressions” distributed on the Society for Human Resource Management (“SHRM”) website for 30 days, from September 1 to 30, 2022. (Id.) During that same time frame, Giraldi also “caused approximately 60,000 impressions to be delivered on Think Advisor’s Life/Health channel of

their website.” (Id.) Additionally, Giraldi arranged for digital notice to appear in SHRM’s HR Daily e-newsletter2 on August 30, 2022 and September 22, 2022, and in ThinkAdvisor Life/Health Daily’s e-newsletter3 on September 5, 6, 7, 8 and 9, 2022. (Id. at ¶ 14.) Further, on August 16, 2022, Gilardi distributed a press release to media outlets nationwide via PR Newswire. (Id. at ¶ 15.) Consumer Media. As for the consumer portion of the Settlement Class, Gilardi arranged for the Summary Notice to be published in the nationwide print edition and online digital replica of the September 26, 2022 issue of People magazine. (Id. at ¶ 16.) In addition, Gilardi “purchased approximately 72,800,0004 impressions programmatically to be distributed on

desktop and mobile devices via various websites and on Facebook from August 16, 2022 through September 30, 2022.” (Id. at ¶ 17.) These “were geographically targeted to adults 18 years of age and older nationwide and in Puerto Rico, Guam, the U.S. Virgin Islands, the Northern Mariana Islands, and in American Samoa.” (Id.) Furthermore, Gilardi contacted several organizations and support groups for assistance in sharing information with their members and

2 The SHRM HR Daily e-newsletter has approximately 458,000 subscribers. (See id. at ¶ 14 (noting that the notice was “delivered to approximately 458,000 subscribers each weekday”).) 3 The ThinkAdvisor Life/Health Daily e-newsletter has 37,000 opt-in subscribers. (See id. (noting that the notice was “sent to approximately 37,000 subscribers each weekday.”).) 4 Ultimately, 73,186,129 impressions were delivered, meaning an additional 386,129 impressions were delivered at no extra charge. (Id. at ¶ 17.) audiences. (Id. at ¶ 18.) The organizations included Crohn’s & Colitis Foundation, The Arthritis Foundation, American Juvenile Arthritis Foundation, and Rheumatoid Arthritis Foundation, and the support groups included the REMICADE (infliximab) Users and Support and Remicade Moms groups on Facebook, as well as the Crohn’s Forum, My Crohn’s and Colitis Team, and My RATeam online groups. (Id.)

Response Mechanisms. On September 2, 2022, the informational settlement website www.RemicadeSettlement.com went live. (Id. at ¶ 19.) Consumer and TPP Settlement Class members were able to file claim forms online via that website and obtain additional information and court documents. (Id.) A week later, on September 9, the toll-free number went live. (Id. at ¶ 21.) Settlement Class members were able to call the number to learn more about the Settlement and ask questions. (Id.) As of October 27, 2022, the settlement website had received 80,064 hits, and the toll-free number had received a total of 116 calls. (Id. at ¶¶ 20, 22.) The toll-free line also received six requests for Consumer Notice Packets and two requests for TPP Notice Packets to be mailed. (Id. at ¶ 22.)

Responses. As of October 27, 2022, Gilardi had received 2,222 claims filed through the postal mail and the case website. (Id. at ¶¶ 20, 23.) 195 claims were submitted by TPPS and 2,027 were submitted by consumers. (Id. at ¶ 23.) As of January 9, 2023, Gilardi received approximately 160,227 claims filed through postal mail and the case website; 1,771 were submitted by TPPs and 158,506 were submitted by consumers. (Doc. No. 207-11 at ¶ 9.) Gilardi did not receive any exclusion requests. (Id. at ¶ 10.) B. Illinois’s and Massachusetts’s Attorney General’s Motion to Intervene On September 19, 2022, the Attorneys General for Massachusetts and Illinois filed a Motion to Intervene for a limited purpose. (Doc. No.

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