Case 3:17-cv-01823-BRM-LHG Document 19 Filed 05/05/17 Page 1 of 3 PageID: 390 K1-41,LLF,R ROHRBACK L.L.P. LAURIE B. ASITTON IAN S. BIRK 0 KENNETH A. BLooi 0 KAREN E. Boxx 0 GRETCHEN FREEMAN CAPPIO 0 ALISON CHASE(De T. DAVID COPLEY 060 ROB J. CRICHTON 80 MAUREEN M. FALECKI 00 J ULI FARRIS 000 RAYMOND.). FARROWO ERIC J. FIERRO0 WILLIAM L. FLEMING ALISON S. GAFFNEY 0 GLEN P. GARRISON 00 LAURA R. GERBER 0 MATTHEW M.GEREND GARY A. Gorr°0 BENJAMIN GOULD 00 CHRISTOPHER GRAVER AT MARK A. GRIFFIN 00 AMY N.L. HANSON IRENE M. I-IECHT SCOTT C. I-IENDERSON MICHAEL G. HOWARD 0 KHESRAW KARMAND 00 DEAN N. KAWAMO1O 000 RON KILGARD()SO KATHRYN M. KNUDSEN DAVID" KO TANYA KORKHOV ERIC R. LALIBERTE BENJAMIN.). LAN'I'Z 0 LUKE M. LARIVIERE CARI CAMPEN LAUFENBERG ELIZABETH A. LELAND JEFFREY LF,WIS TANA LIN (32)00 DEREK W. LOESER HOLLY E. LYNCH 0 RYAN MCDEVITT 0 DANIEL MENSHER 00 IAN J. MENSHER MICHAEL W. MEREDITH LISA A. NOWLIN 0 GRETCHEN S. OBRIST 0 ROBERT S. OVER 0 DUDLEY B. PANcHoT 0 LISA FAYE PETAL DAVID S. PREMINGER 1) IVIATEHEW J. PREUSCH 00 ERIN M. RILEY 00 STEVEN N. Ross ISAAC Rulz0 DAVID J. RUSSELL 0 MARK D.SAMSON TO LYNN LINCOLN SARK() ©0O WILLIAM C.SMART CHRISTOPHER L. SPRINGER 0 THOMAS A. STE.RKEN 0 PAUL A. TONELLA 0 BETH M.STROSKY KAIUN B. SWOPE HAMA C. UNREIN 009 G ABE E. VERDUGO AMY WILLIAMS-DERRY ©© MICHAEL. WOERNER 9 BENSON D. WONG EDWIN G. WOODWARD 0 0 ADMITTED IN ARIZONA QI ADAIITTED IN CALIFORNIA 1)ADMITTED IN COLORADO CD ADMITTED IN IDAHO A DMITTED IN ILLINOIS 0 ADMITTED IN MASSACHUSETTS 12) ADMITTED IN MICHIGAN A DMITTED IN MINNESOTA •ADMITTED IN MONTANA ADMIll'ED IN NEW YORK 0 ADmirreo IN 01110 O ADMITTED IN OREGON O ADMITTED IN WASHINGTON 0 ADMITTED IN WASHINGTON. D.C. 0 ADMITTED IN WISCONSIN May 5,2017 VIA ELECTRONIC FILING The Honorable Brian R. Martinotti, U.S.D.J. Clarkson S. Fisher Bldg. & U.S. Courthouse 402 E. State Street, Room 2020 Trenton, NJ 08608 Re: The Honorable Lois H. Goodman, U.S.M.J. Clarkson S. Fisher Bldg. & U.S. Courthouse 402 E. State Street, Room 2020 Trenton, NJ 08608 In re Insulin Pricing Litigation, No. 3:17-cv-00699(BRM)(LHG) Barnett v. Novo Nordisk Inc., et al., No. 3:17-cv-1580(BRM)(LHG) Boss v. CVS Health Corp., et al., No. 3:17-cv-01823(BRM)(LHG) Christensen v. Novo Nordisk Inc., et al., No. 3:17-cv-02678(BRM)(LHG) Dear Judge Martinotti and Judge Goodman: The Boss Plaintiffs submit this reply letter in further support of Keller Rohrback's application to serve as Interim Co-Lead Class Counsel in the above captioned Insulin Actions.' This is a vitally important case for millions of Americans. The skyrocketing cost of insulin is inexcusable. Defendants' scheme to inflate prices has profound consequences for people with diabetes who often cannot afford the cost of the medication they need to stay alive. We and our clients are committed to this case and the relief we are striving to obtain for the classes. Keller Rohrback is uniquely qualified to serve as one of the lead counsel in this case based on the Rule 23(g) factors. We have extensive leadership experience in cases of this type against both drug manufacturers and Phatmacy Benefit Managers("PBMs"), and other major class actions, and we have the resources to pursue this complex, multi-party case. With regard to the work we have done to investigate and advance this case, we note that the Boss complaint was prepared neither quickly, nor easily. Rather, it was the result of our independent research and investigation into the insulin market and the reasons for its corruption. We drew upon the general knowledge developed in our other prescription drug and PBM cases, and we consulted with For the reasons set forth in our April 28, 2017 letter, we reiterate our support for our co-counsel, Critchley, Kinum & DeNoia to serve as a member of an Executive Committee in this litigation. mi 1201 THIRD AVENUE,SUITE 3200, SEATTLE, WA 98101-3052 TELEPHONE:(206)623-1900 FACSIMILE:(206)623-3384 si SANTA BARBARA RONAN OAKLAND NEW YORK PI IOENIX WWW.KELLERROI IRBACK.COM I WWW.KRCOMPLEXLIT.COM SEATTLI Case 3:17-cv-01823-BRM-LHG Document 19 Filed 05/05/17 Page 2 of 3 PageID: 391 Hons. Martinotti and Goodman May 5, 2017 Page 2 KELLER ROHRBACK L.L.P. leading medical and industry experts, as well as our clients, including the Type 1 Diabetes Defense Foundation—committed advocates in their own right who selected KR in part because of our experience with PBMs,insurers, and similar claims. Through these efforts we determined that responsibility lies not just with the three main insulin manufacturers, but also with the three largest PBMs—middlemen and gatekeepers who control the insulin marketplace through their relationships with plans, pharmacies, and the manufacturers. The PBM Defendants play a central role in the scheme selling formulary access in exchange for "rebates" or other payments from the Manufacturer Defendants, and driving up the cost of insulin in the process. We also determined that the PBM rebate scheme thrives because of the lack of transparency in the marketplace, and thus, we are seeking injunctive relief forcing disclosure of prices and rebates so that Defendants cannot continue to mislead the public regarding the prices manufacturers actually collect from insulin purchases. Finally, in addition to bringing RICO claims against the PBMs, we added ERISA claims against the PBMs because a substantial portion of class members obtain insulin through their ERISA-governed health plans. These unique aspects of the Boss complaint demonstrate the work that went into it, and the knowledge and experience we can bring to bear in this case. The importance of the claims against the PBMs is underscored by the recently announced investigation by the Washington State Attorney General, which is focused on both the PBMs and the manufacturers. See Bob Herman, Washington attorney general brings CVS into insulin probe, AXIOS(May 2, 2017), https://www,axios.com/washington-attorney-general-brings-cvsinto-insulin-probe-2389709894.html. Other government probes, including one by the U.S. Attorney for the Southern District of New York, have focused on the PBMs' ties to insulin manufacturers as well. See Eric Sagonowsky, Eli Lilly's insulin pricing scrutiny intensifies with newly disclosed state AG probes, FIERCEPHARMA (May 2, 2017, 9:23 AM), http://www.fiercephanna.com/pharma/eli-lilly-faces-insulin-pricing-probes-washington-newmexico; James Paton, Novo's Legal Challenges Mount as States Query Insulin Prices, BLOOMBERG (May 3, 2017, 1:08 AM), https://vvww.bloomberg.com/news/articles/2017-0503/novo-s-legal-challenges-mount-as-u-s-states-query-insulin-price. Our commitment to including the PBMs in this litigation, and seeking injunctive relief that will require price transparency is an important factor under the Rule 23(g) considerations. See, e.g., Manual for Complex Litigation, Fourth, § 10.22 (explaining courts should "ensure that counsel appointed to leading roles . . . will fairly and adequately represent all of the parties on their side . . . ."; see also id. § 10.224 (explaining that an important consideration for selecting a lead counsel is "whether designated counsel fairly represent the various interests in the litigation . . . ."); Walker v. Discover Fin. Servs., 2011 WL 2160889, at *4(N.D. Ill. May 26, 2011) (selecting counsel who "will most adequately represent the interests of the class in prosecuting all theories and claims . . . .")(emphasis added). It is precisely for this reason that we propose a leadership structure in which KR is appointed Interim Co-Lead Class Counsel with primary responsibility for pursuing the PBM claims. Case 3:17-cv-01823-BRM-LHG Document 19 Filed 05/05/17 Page 3 of 3 PageID: 392 Hons, Martinotti and Goodman May 5, 2017 Page 3 KELLER ROHRBACK L.L.P. KR has the utmost respect for the other firms seeking leadership positions in this case. We have worked with them before, and we have no doubt that we can collaborate effectively to ensure that the claims against all Defendants are vigorously pursued. We look forward to the opportunity to do so. Resp/ctfully, , ` Lynn Lincoln Sar Derek W. Loeser Gretchen S. Obrist cc: All counsel of record via ECF