Important Update: The distribution of the Settlement Fund to Class members who submitted timely and valid claims commenced in late 2013 and is ongoing.

Overview of the Settlement

Commonwealth Care Alliance, et al. vs. AstraZeneca Pharmaceuticals L.P., et al.,
Case No. 05-0269 BLS

A settlement has been reached with AstraZeneca Pharmaceuticals LP (“AstraZeneca”), the maker of Nexium®, in a class action lawsuit pending in Suffolk County Superior Court in the Commonwealth of Massachusetts (“Lawsuit”). 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. Plaintiffs do not claim that Nexium® is unsafe in any way.

Why Is There a Settlement?

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 Settlement is not an admission of wrongdoing or an indication that any law was violated.

What Does the Settlement Provide?

AstraZeneca agreed to 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 is being distributed in cash to settlement Class members who submitted valid claims. 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.

In exchange, the settlement releases claims against AstraZeneca concerning the legal issues in the Lawsuit. The “Release” is described more fully in the Stipulation of Settlement and Release, which describes in more detail the legal claims that you give up as part of the Settlement.

Am I Part of the Settlement?

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®.

What Were My Options?

  1. To qualify for payment from the Settlement, you must have timely submitted a completed Claim Form. Claim Forms must have been postmarked, faxed, sent electronically in PDF format, or submitted online by August 30, 2013.
  2. If you had comments about, or objections to, any aspect of the Settlement, including the requested attorneys’ fees or service awards, you could have expressed your views to the Court. Refer to the Full Notice for more information on how you could have expressed your views to the Court.
  3. If you did 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.

When and Where Did the Court Approve the Settlement?

The Court held a hearing known as a Fairness Hearing on July 31, 2013, at Suffolk County Superior Court, Three Pemberton Square, Boston, Massachusetts 02108. At the Fairness Hearing, the Court approved the Settlement and the plan for distributing it as fair, adequate, and reasonable. The Court also approved how much to pay Class Counsel and the settlement Class Representatives.

Important Dates
May 31, 2013
Objection Deadline
July 31, 2013
at 2:00 p.m.
Fairness Hearing
August 30, 2013
Claim Form Deadline

Your Options

  • To get a payment from the Settlement, you must have submitted a Claim Form by August 30, 2013
  • To learn more about the Settlement, consult the Full Notice