California Judge Denies Class Certification In Action Alleging Unfair Prices for Prescription Meds
In Saavedra v. Eli Lilly & Co., the plaintiffs brought suit against the manufacturer of the anti-depressant drug Cymbalta, alleging not that they overpaid for the product but that they were harmed because they received a product that had less value than what they expected to receive. The plaintiffs sought to certify four classes under consumer fraud protection statutes in four jurisdictions: California, Massachusetts, New York, and Missouri. Initially, the trial court rejected these classes, stating that the plaintiffs had asserted an “unusual” theory of recovery. More specifically, the plaintiffs omitted any allegations indicating how they suffered or experienced the withdrawal symptoms.
Instead, the plaintiffs contended that they received a product that had less utility, which they defined as the benefit they believed they would receive from using the product. The trial court rejected this theory, noting that it focused only on the refund associated with users’ out-of-pocket costs. In reality, the prescription drug market’s price and value relationship is severed due to the nature of how prescription drugs are marketed and sold.