Trenton, NJ – A federal judge has denied consumers’ request to reconsider part of a ruling that trimmed their sweeping challenge to the alleged insulin pricing scheme led by Novo Nordisk, Sanofi, and Eli Lilly.
Motion for reconsideration denied
U.S. District Judge Brian R. Martinotti on Wednesday refused to alter his earlier order that granted in part and denied in part the drugmakers’ motion to dismiss. Plaintiffs, who filed a Fourth Amended Complaint in March 2024, had asked the court to reinstate certain claims that were dismissed in that ruling.
Case alleges artificial list price hikes
The litigation, which began in 2017, accuses the three manufacturers of conspiring to inflate list prices for insulin while secretly rebating portions of those prices to pharmacy benefit managers (PBMs) in exchange for favorable formulary placement. Plaintiffs claim the practice caused consumers nationwide to overpay for life-sustaining drugs even as production costs dropped.
The case currently proceeds on narrowed claims brought by three putative classes: a nationwide mail-order RICO class, a nationwide New Jersey consumer fraud class, and several single-state consumer fraud classes.
Court keeps trimmed case moving forward
Judge Martinotti concluded plaintiffs had not shown grounds for reconsideration, such as clear error or new evidence, and emphasized that much of the case still remains active. Earlier this year, the court denied class certification but allowed amended pleadings with revised class definitions.
Key Points
- Insulin buyers asked the court to reconsider dismissal of some claims; the judge denied the request.
- Plaintiffs allege drugmakers and PBMs coordinated to inflate list prices while costs of production fell.
- Portions of the case remain alive, focused on narrower class-based claims.
The billion-dollar battle over insulin prices continues, but without a second chance at claims already cut.