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Mylan Says It Will Appeal Court Decision In Last Of Lorazepam And Clorazepate Antitrust Cases - Update [MYL]
Friday, Mylan Inc. (MYL), a developer of Pharmaceutical ingredients, said that it intends to appeal a decision by the U.S. District Court for the District of Columbia on January 24, 2008 against the company and its co- defendants Cambrex Corp. (CBM) and Gyma Laboratories in the last of the pending Lorazepam and Clorazepate antitrust cases. Mylan added that it would continue to vigorously defend itself in the litigation. The company said this in response to damages of $69 million awarded to four health insurers nearly three years after a jury found that Mylan violated antitrust laws by overcharging for the two generic versions of popular anti-anxiety drugs.
According to the company, the first related suit was filed in 1998. In June 2005, a jury in the district court had rendered a verdict against Mylan and its co-defendants, ordering them to pay at least $12 million to Blue Cross Shield plans in Massachusetts and Minnesota, as well as Owatonna, Minnesota-based Federated Mutual Insurance Co. and Health Care Service Corp.
The parties subsequently filed various post-trial motions, and the January 24 decision resolved several of those motions. The district court ordered Mylan to pay $35.9 million. The court also ordered Cambrex and Gyma to pay $16,709,242 each, some or all of which may be subject to indemnification obligations by Mylan. Plaintiffs' motion for attorneys' fees remains pending.
MYL closed Friday's regular session at $14.57, down $0.04 or 0.27% on a volume of 5,831,883 shares.
CBM closed Friday's regular session at $9.32, up $0.24 or 2.64% on a volume of 167,900 shares.