Pharmaceutical Company to pay $4.75 Million in TCPA Settlement

by | Feb 8, 2018 | Compliance Blog Posts | 0 comments

Vertex Pharmaceuticals Inc will pay a $4.75 million settlement in response to putative class action claims that the company violated the Telephone Consumer Protection Act (TCPA). The claims in the TCPA settlement entail that Vertex violated the Amended Junk Fax Prevention Act of 2005 portion of the TCPA by faxing unsolicited invitations to a hepatitis C therapy event.

The motion was made by plaintiff Physicians Healthsource Inc., who received four faxes corresponding to the event, and claims that overall around 8,800 faxes were sent in June 2011 by Vertex and Tactical Advantage Group LLC, who the company contracted with for the event. Vertex sent the faxes for a satellite broadcasted event, which both Vertex and Tactitcal invited healthcare specialists to attend, concerning the latest data on Incivek, a hepatitis C virus therapy drug produced by Vertex.

The motion by Physicians Healthsource was first filed in April 2015. In October 2015 the defendants’ request for dismissal of the lawsuit was denied, and in March 2017, the court denied the defendants’ dueling motions for summary judgment.

TCPA Settlement

The class counsel is to ask the court to sign off on awarding $1.6 million—a one-third cut of the settlement— in attorneys’ fees, up to $90,000 in expenses, and an incentive award of $25,000 to Physicians Healthsource at the final approval hearing. Class members, including all persons in the United States who received the invitation, will also receive $500 or a pro rata share if the claims surpass the available TCPA settlement funds.

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