Avandia Class Action for Third Party Payors
Gibbs Mura represents third party payors, including unions and corporate health and welfare funds, in a class action lawsuit against Glaxo Smith Kline (GSK), seeking reimbursement of the prescription drug costs associated with Avandia. The lawsuit specifically alleges that Glaxo Smith Kline deliberately concealed the significant safety risks associated with the use of Avandia, and continued to promote it as a safe treatment for diabetes despite the known risks of heart attack and disease.
Eric Gibbs was appointed by a Pennsylvania federal court judge to serve on the Plaintiffs’ Executive Committee in consolidated class action litigation against the drug maker.
Third party payors (TPPs) typically provide medical coverage, including prescription drug coverage, for their members and members’ dependents. Coverage of a TPP member’s prescription, in whole or in part, is determined based on whether the drug is listed in the TPP’s “formulary,” or preferred drug list. Pharmacy Benefit Managers (PBMs) determine which drugs will be included a TPP formulary by analyzing research on a variety of factors including a drug’s cost, effectiveness, and safety.