Perrigo to pay $10 million to settle US class action over baby formula prices

By Mike Scarcella

WASHINGTON, Oct 14 (Reuters) - Perrigo PRGO.N has agreed to pay $10 million to settle a proposed class action alleging it conspired with Gerber Products to block new entrants into the market for store-brand infant formula, allowing Perrigo to inflate prices that retailers passed on to consumers.

Here are the details:

• The consumer plaintiffs filed their proposed settlement with Perrigo in federal court in Brooklyn on Tuesday. The accord requires a judge’s approval

• The settlement covers customers of store-brand infant formula manufactured or sold by Perrigo since April 2020. The plaintiffs’ lawyers estimate there are millions of class members across the US

• Perrigo is a top supplier in the US of store-brand formula, which is sold under a retailer’s label and can cost less than similar branded products

• The settlement said Perrigo, which denied wrongdoing, will cooperate with the plaintiffs in their ongoing lawsuit against Gerber, including by making its directors, officers and employees available to testify and handing over transaction data

• Perrigo and Gerber did not immediately respond to requests for comment. Gerber also has denied any wrongdoing

• Under the deal, Perrigo will refrain for three years from making agreements with infant formula businesses that limit competition for store-brand formula without a legitimate business reason

The case is Thomas Conry et al v. Gerber Products et al, US District Court for the Eastern District of New York, No. 1:24-cv-06784-NG-AYS.

For plaintiffs: Jeffrey J. Corrigan of Spector Roseman & Kodroff and Simon Paris of Saltz Mongeluzzi

For Perrigo: C. Scott Lent of Arnold & Porter Kaye Scholer