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Bates White's analysis supports judge's decision in AWP Litigation

May 25, 2010

Bates White Partner Dr. Eric Gaier testified on behalf of a joint defense group of leading pharmaceutical manufacturers in the AWP multidistrict litigation lawsuit. The judge in this case denied certification to the self-administered drug class, which represented more than 90% of the commerce at issue.

Average Wholesale Price (AWP) is a benchmark price that sometimes serves as a foundation for a complex series of payments involving consumers, insurance companies, and pharmacies. AWP is also the subject of a class action lawsuit that was consolidated as multidistrict litigation in federal district court in Massachusetts. Plaintiffs in this case alleged that manufacturers created illegal spreads by lowering drug prices to physicians and pharmacies while artificially inflating the AWP.

Dr. Eric Gaier was retained to testify on issues of common impact, feasible damage methodologies, and merits on behalf of a joint defense group of leading pharmaceutical manufacturers. He submitted written, deposition, and trial testimony concerning competitive dynamics between providers, Medicare, and third-party payors as well as analyzed the effect of the Medicare Prescription Drug Improvement and Modernization Act of 2003. The judge in this case denied certification to the self-administered drug class, which represented more than 90% of the commerce at issue