A proposed class action proceeding against over 50 generic drug manufacturers was commenced in 2020.(1) The proposed class action alleged that the defendants had conspired to "allocate the market, fix prices and maintain the supply of generic drugs" contrary to the Competition Act, and claimed damages of C$2.75 billion.

On 20 September 2021, the Federal Court approved a litigation funding agreement (LFA).(2) The proposed class representative plaintiff entered into an LFA with a litigation funding group, Parabellum, to fund the action. Pursuant to the LFA, Parabellum will fund and be reimbursed for certain costs, including disbursements and adverse cost awards, and would be entitled to a funding fee. The approved funding fee is 10% of the claim proceeds after reimbursement of certain funds advanced and is subject to a cap of between C$5 million and C$45 million depending on when the overall claim proceeds are received.

For further information on this topic please contact Urszula Wojtyra at Smart & Biggar by telephone (+1 416 593 5514) or email ([email protected]). The Smart & Biggar website can be accessed at www.smartbiggar.ca.


(1) For further information, please click here.

(2) Kathryn Eaton v Teva Canada Limited et al, 2021 FC 968.