THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, September 4, 1996 TAG: 9609040446
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: ST. PAUL, MINN. LENGTH: 38 lines
Bristol-Myers Squibb Co. has agreed to pay Minnesota $5 million to settle an infant formula price-fixing lawsuit.
``Regardless of price, babies must eat and parents must feed them. That's why price-fixing of this product is so harmful,'' said Attorney General Hubert Humphrey III in announcing the deal Tuesday.
Bristol is the parent company of Mead Johnson & Co., which makes Enfamil infant formula.
The settlement is the latest in a series as infant-formula makers try to put behind them years of litigation accusing them of conspiring to raise their prices and stave off competition.
Similar price-fixing cases were filed against Bristol and another formula maker, Abbott Laboratories, in 17 states.
Abbott agreed in May to pay $32.5 million to settle all 17 suits against it.
Minnesota contended prices for formula increased 130 percent between 1980 and 1993, while the price of milk fell 6 percent.
Assistant Attorney General Carol Bennett said the state had evidence that the two companies signaled to each other when they were about to raise their prices. ``They increased the prices in a lock-step fashion over the period of the lawsuit, from 1980 to 1992,'' Bennett said.
The Minnesota settlement money will go to the state Women, Infants and Children program, a food program for poor mothers, and to consumers who bought formula between 1980 and 1992 and who apply for refunds. The amount of individual refunds depends on how many people apply.
Bristol and Mead Johnson admitted no fault in the settlement. A spokeswoman did not immediately return a telephone call for comment.
Formulas covered under the settlement are Similac, Enfamil, Isomil, Prosobee, Nutramigen, Pregestimil, Alimentum and Advance. by CNB