Overview
On May 10, 2024, Cohen Milstein filed a first amended class action complaint before the United States District Court for the District of New Jersey in a novel ERISA class action.
Lead plaintiff Ann Lewandowski, a current employee of Johnson & Johnson, accuses the pharmaceutical giant of mismanaging its own Group Health Benefits Plans’ prescription drug program, costing employees millions of dollars in the form of higher payments for prescription drugs, higher out-of-pocket costs and co-pays, and, ultimately, lower wages in violation of the Employee Retirement Income Security Act (ERISA).
Case Background
Johnson & Johnson offers current and former employees several health plans, including the Salaried Medical Plan and Salaried Retiree Medical Plan, which are a part of the Group Health Benefits.
The putative class action focuses, in part, on the prices charged for so-called “specialty drugs” purchased through a specialty pharmacy, Accredo, that is affiliated with Johnson & Johnson’s pharmacy benefits manager (PBM), Express Scripts. The complaint cites a specific example of a 90-pill prescription for the generic drug teriflunomide (the generic form of Aubagio used to treat multiple sclerosis). The Complaint alleges a prescription cost $40.55 at Wegmans, $41.05 at ShopRite, $76.41 at Walmart, $77.41 at Rite Aid, and $28.40 at Cost Plus Drugs online pharmacy (without insurance), while the same 90-pill prescription costs Johnson & Johnson health plan participants $10,239.69. In addition, the Complaint includes many other examples of drugs that are overpriced.
The class action seeks to stop Johnson & Johnson from mismanaging its prescription drug program and to recover excess payments on behalf of Johnson & Johnson’s health plans and the participants and beneficiaries of those plans.
Case name: Lewandowski v. Johnson and Johnson, 3:24-cv-00671 (D.N.J.)