Mylan reaches $96.5-million settlement regarding claims over generic Provigil

Mylan agreed to pay $96.5 million to a group of drug purchasers to settle allegations made in 2006 that the company paid Cephalon to delay the launch of a generic version of the narcolepsy therapy Provigil (modafinil). The settlement, which was filed on February 3 in a US district court, awaits approval by the presiding judge. According to the filing, "the settlement assures all class members that they will receive a substantial cash settlement payment now, and that the litigation against Mylan will be put to rest." 

In the case, the plaintiffs contended that Cephalon entered into deals with Mylan, Teva and Sun Pharmaceutical's Ranbaxy Laboratories unit to delay the launch of generic Provigil until 2012, arguing that the transactions violated federal antitrust law. Under the settlement terms, Mylan will reportedly pay the settlement under all circumstances unless the court rejects the accord as being fair, reasonable or adequate. 

The deal comes after Teva, which purchased Cephalon in 2011, settled a class-action lawsuit in 2015 regarding similar matters. The Israeli drugmaker also agreed to pay $1.2 billion to the US Federal Trade Commission to resolve antitrust allegations that Cephalon illegally delayed the launch of generic Provigil.