March 7, 2003

            Attorney General Mike Cox announced today a settlement in the federal antitrust suit brought against Bristol-Myers Squibb Co., Watson Pharma, Inc. and Danbury Pharmacal, Inc.   This suit involved the widely prescribed anti-anxiety drug BuSpar.

The Michigan Attorney General’s Office, which prosecuted the suit along with 34 other states, the District of Columbia and Puerto Rico, alleged that Bristol and the other defendants violated state and federal antitrust laws which prevented generic BuSpar from coming to market. Michigan is filing papers with the Court today seeking preliminary Approval of the Settlement.

“The BuSpar settlement means money for consumers and money for our state,” said Cox.  “By entering into this agreement, we send a clear message that big drug manufacturers cannot and will not get away with artificially and illegally driving up the costs of prescription drugs.  In these tough budget times, it is important that we remain vigilant in recovering money damages for families and for the state.” 

            As a result of the settlement, following final approval by the Court, a nationwide consumer fund will be established and administered by the plaintiff states.  Consumers will be able to seek cash refunds for purchases made between January 1, 1998 and JANUARY 31, 2003. Payments are expected to be in the range of $200-$300 for many consumers.

            Michigan will also receive an estimated $2.5 million as a result of the proposed settlement to cover damages suffered by state and local agencies.  While the exact allocation among the litigating states has not yet been determined, more than $50 million will be divided among the various plaintiff states.

            Consumers seeking a refund can do so by logging on to www.busparsettlement.com, or calling toll-free 1-800-678-9587.