Perrigo to pay $10 million to settle US class action over baby formula prices
PRGO•Perrigo agreed to pay $10 million to settle a proposed US class action alleging it conspired with Gerber Products to block new entrants into store-brand infant formula and inflate prices. The settlement, which requires a judge’s approval, covers customers since April 2020.
1. Settlement terms
The proposed settlement was filed in federal court in Brooklyn. It covers customers of store-brand infant formula manufactured or sold by Perrigo since April 2020; plaintiffs’ lawyers estimate there are millions of class members nationwide.
2. Cooperation and restrictions
Perrigo, which denied wrongdoing, will cooperate in the ongoing lawsuit against Gerber by making directors, officers and employees available to testify and providing transaction data. For three years, Perrigo will refrain from agreements with infant formula businesses that limit competition for store-brand formula without a legitimate business reason. Gerber has also denied wrongdoing.
