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HomeMy WebLinkAboutMINUTES - 12172013 - C.18RECOMMENDATION(S): 1. APPROVE and AUTHORIZE the Health Services Director, or designee, on behalf of the County, to submit a claim form and participate in the partial settlement of In re: Plasma-Derivative Protein Therapies Antitrust Litigation, Northern District of Illinois Case No. 09-CV-7666. 2. DIRECT the Health Services Director, or designee, to complete and submit the required claim forms by January 6, 2014. FISCAL IMPACT: A third party settlement administrator will determine the amount of the settlement funds to be allocated to CCRMC. The amount of CCRMC’s allocation will be based on the number of claims submitted and the total dollar amount of CCRMC’s qualifying purchases. BACKGROUND: On October 18, 2013, the United States District Court for the Northern District of Illinois issued an order preliminarily approving a partial settlement in APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/17/2013 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Ana Roth, 925-370-5100 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 17, 2013 David Twa, County Administrator and Clerk of the Board of Supervisors By: Stephanie L. Mello, Deputy cc: C. 18 To:Board of Supervisors From:William Walker, M.D., Health Services Director Date:December 17, 2013 Contra Costa County Subject:Approval of Partial Settlement of In re: Plasma-Derivative Protein Therapies Antitrust Litigation BACKGROUND: (CONT'D) In re: Plasma-Derivative Protein Therapies Antitrust Litigation, Northern District of Illinois Case No. 09-CV-7666 (“Litigation”), a class action lawsuit involving claims related to the sale of immunoglobulin and albumin by CSL Limited, CSL Behring Limited, LLC, CSL Plasma, Inc., and Plasma Protein Therapeutics Association (“Settling Defendants”), and by Baxter Healthcare Corporation (“Baxter”), between July 1, 2003 and December 31, 2009. The settlement of the Litigation requires the Settling Defendants to pay $64 million into a settlement fund, to be allocated among the plaintiff-class members. (Baxter has not yet agreed to settle the Litigation, so the Litigation will continue against it.) The settlement funds will be allocated among plaintiff-class members that participate in the settlement based on the number of claims submitted and the total dollar amount of the class member’s qualifying purchases from the Settling Defendants and Baxter. Contra Costa County’s Contra Costa Regional Medical Center (CCRMC) is included in the plaintiff class. The third party settlement administrator estimates that CCRMC purchased $31,862.60 worth of immunoglobulin and $288.00 worth of albumin from Baxter between July 1, 2003 and December 31, 2009. Participation in the settlement will enable CCRMC to be allocated a portion of the settlement funds based on these purchases. The Court will hold a fairness hearing on January 22, 2014. At the fairness hearing, the Court will certify the settling plaintiff class and conclude this Litigation as to the Settling Defendants. In order for CCRMC to participate in the settlement of the Litigation, the Board of Supervisors must approve the proposed settlement and authorize the Chief Executive Officer of CCRMC, or her designee, to submit claim forms to the third-party settlement administrator by January 6, 2014. If the Board of Supervisors authorizes CCRMC to participate in the settlement, it will be releasing the Settling Defendants from all claims related to any violation of state or federal law while selling immunoglobulin and albumin up to the present time, whether or not the violations were covered by the Litigation. (The Settlement Agreement that provides for the partial settlement of the Litigation is available at www.PlasmaTherapySettlement.com.) If the Board of Supervisors does not approve participating in the settlement of the Litigation, the County will not be entitled to any of the settlement funds. Further, to assert its individual claims, which the class and its attorneys have asserted on behalf of the County and other class members in the Litigation, the County would need to initiate costly litigation against the Settling Defendants and/or Baxter. For the foregoing reasons, CCRMC staff recommends that the Board of Supervisors approve participating in the settlement of the Litigation, and authorize the Health Services Director, or designee, to submit claim forms by January 6, 2014. CONSEQUENCE OF NEGATIVE ACTION: If the Board of Supervisors does not approve participating in the settlement of the Litigation, the County will not be entitled to any of the settlement funds. CHILDREN'S IMPACT STATEMENT: Not Applicable