What other lawsuits has Acthar generated?
Beyond government enforcement, private payers and investors have sued, with a 2017 class action alleging anticompetitive conduct since 2007 and a $65.75 million shareholder settlement over alleged concealment of Acthar's dependence on federal reimbursement.
Beyond government enforcement, private payers have sued. In April 2017 the City of Rockford, Illinois filed a putative class action on behalf of self-funded entities that paid for Acthar since 2007, alleging Mallinckrodt engaged in anticompetitive, unfair and deceptive conduct to raise and maintain Acthar's price, including by acquiring Synacthen.
Investors also sued: the bankruptcy court approved a $65.75 million settlement with shareholders who claimed the company concealed how much Acthar depended on federal reimbursement. The price history also drew scrutiny from Congress in 2020. Taken together, the litigation portrays Acthar as a drug whose business model depended on the absence of competition and on public payers.