Washington, DC (May 14, 2001)-The SPAN Coalition today announced that it
will organize consumer and patient groups across the country to initiate
a series of class action lawsuits against pharmaceutical companies that
prevent competition and endanger public health. The strategy is
intended to raise the financial stakes for drug manufacturers that
engage in anti-competitive or anti-consumer behavior in order to avoid
competition.
The National Organization for Women (NOW) announced that it will lead
the latest class action suit against Bristol-Myers Squibb for tactics it
used to prevent patient access to lower-priced versions of Taxol, a
treatment for breast and ovarian cancer. A federal court ruled in
March of last year that the tactics included "an intent to deceive" the
government.
"Congress is letting pharmaceutical companies get away with abuse,"
stated NOW President Patricia Ireland. "Until congressional leaders
take action, we will hold corporations like Bristol-Myers Squibb
accountable for their unfair business practices."
SPAN members filed a similar suit against Bristol-Myers Squibb in April
to recover damages suffered when the company unlawfully prevented
competition for BuSpar (buspirone), an anti-anxiety drug. Bristol
registered a new patent for the drug with the FDA in order to trigger
provisions of a federal law that results in 30-month approval delays for
competing generic products. A federal court ordered Bristol to remove
the patent this year.
"Consumers have no regulatory avenue for relief from market abuses by
pharmaceutical companies," stated Tim Fuller, SPAN founder and Executive
Director of the Gray Panthers. "It is time to take matters into our own
hands."
SPAN also announced that it is working with specific consumer groups
across the nation to prepare similar suits, including against:
SPAN intends to work with state Attorneys General and the Federal Trade
Commission to identify marketplace abuses by pharmaceutical
manufacturers. It will then help aggrieved parties seek treble damages
where anti-competitive behavior by manufacturers can be demonstrated.
"Consumers have no political influence in the pharmaceutical
marketplace," according to Fuller. "This strategy will shift the
balance of power from drug industry executives and their friends in
Congress to the consumers who need relief."
SPAN will establish a national registration process to enable consumers
to identify market abuses and sign up to be included in the lawsuits.
It also will begin regional meetings and seminars to educate consumer
and patient advocacy groups about pharmaceutical industry abuses, and to
provide outreach to potential plaintiffs. SPAN will host a national
meeting this Summer to discuss the progress of the initiative and to
inform members of Congress and industry officials of recommendations for
reform.
Further information can be obtained by contacting Tim Fuller
(202-737-6637), Patricia Ireland (202-628-8669), or from
www.SPANcoalition.org.
SPAN was founded by the Gray Panthers to improve consumer access to
safe, more affordable medicine.