Sanofi-Aventis gets $17.2m in fees from failed Amphastar suit

Sanofi-Aventis has been awarded $17.2 million in attorney fees, legal expenses and interest in a district court ruling on a failed suit levied by Amphastar Pharmaceuticals.

Following Amphastar’s failed False Claims Act (FCA) suit against Sanofi-Aventis, the US District Court for the Central District of California ordered the company to reimburse legal fees from October  2018 through November 13, 2020.

The figure was awarded following a ruling granting fees to Sanofi-Aventis in November 2017, following the dismissal of the case in 2015.

Payments were calculated over two periods: from the unsealing of the complaint in October 2011 through to April 30 2018 (the date the parties stipulated expenses) and from May 1 2018 through to November 13 2020.

Sanofi-Aventis sought a total of $17,335,811.

Amphastar disputed the figure, specifically the propriety of the application of the prime rate as opposed to the lower pre-judgment interest rate—which would have resulted in a $1.5 million reduction.

Amphastar argued that “the prime rate remedy is designed to be compensatory, making the party whole for the cost of loss of use of funds.”

“In this case, Aventis was borrowing funds at interest rates of close to 0% and, therefore, n enhancement based on the prime rate would not be compensatory but rather would provide an improper profit and windfall to Aventis,” Amphastar added.

It also disputed the time period to award pre-judgment interest and the hourly rate for fees.

Judge Kewalramani dismissed Amphastar’s complaints, calculating a $60,333 in interest for work performed from May 1, 2018, through November 13, 2020, for a grand total of $17,203,703.

Case history

Amphastar launched a suit against Aventis in 2009, accusing the company of overcharging for enoxaparin. It sought qui tam action on behalf of the US government.

The litigation was dismissed for lack of jurisdiction in July 2015.

Sanofi-Aventis applied for previous fee payments in July 2017, which was granted in November 2017. The district court ordered Amphastar to pay “reasonable attorneys fees and expenses from the date of the complaint.”

In November 2020, a US magistrate judge awarded Sanofi-Aventis $672,086.85 for non-fee expenses, $12,132,526.34 in attorneys’ fees and interest. Fresh interest calculations and proposed delay-in-payment adjustment amounts were submitted in December, which Amphastar opposed.

This led to the final memorandum and opinion on the payment by judge Kewalramani on 5 May, 2021.

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