13 November 2004

Union lawsuit wins $29M for overcharged consumers
Members who bought Augmentin may be eligible for payment from Glaxo

GlaxoSmithKline, the maker of the antibiotic drug Augmentin, agreed to pay up to $29 million to settle a class-action lawsuit brought by New York State United Teachers and other plaintiffs on behalf of consumers forced to pay more for the drug.

 "This should send a loud and clear message to the prescription drug industry," said NYSUT President Tom Hobart in hailing the settlement.

The suit charged British-owned GlaxoSmithKline illegally maintained a monopoly over Augmentin, an oral antibacterial commonly prescribed for ear and strep infections. Without a generic equivalent, consumers were forced to pay more for the drug.

NYSUT Executive Vice President Alan Lubin, who chaired the state AFL-CIO Task Force on Prescription Drugs, noted the suit forced the generic equivalent of Augmentin to become available to the public. "This has set a powerful precedent, lowered costs and saved welfare benefit funds, workers and retirees millions," Lubin said. "The tide is turning against pharamaceutical companies who are choosing profits over people."

The union will keep up the pressure for fairer prices by pushing for reimportation of American-made drugs from other countries such as Canada .

NYSUT joined the class-action suit in 2002, said NYSUT Chief Counsel James Sandner. Other major plaintiffs included the Welfare Fund of the United Federation of Teachers, NYSUT's affiliate in New York City schools, represented by Arthur Pepper.

Under the terms of the settlement, you may be eligible for funds if you purchased Augmentin from Jan. 4, 2000, through April 30, 2004. Consumers or third-party payors, which include self-insured union health and welfare funds, and self-insured employer health benefit plans, may be eligible for reimbursement.

Proof-of-claim forms must be postmarked no later than Dec. 16.

For more on the claims process or to obtain a claim form:

Phone:
(866) 404-0129

Address:
Augmentin End-Payor Settlement Administration
c/o Complete Claim Solutions Inc., P.O. Box 24771
West Palm Beach, Fla.
33416

or visit www.augmentinlitigation.com

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