AUGUSTA – Thousands of Mainers will benefit from the $100 million settlement of a class action lawsuit brought against Pittsburgh-based Mylan Laboratories Inc. by Maine and 32 other states for overcharging users of lorazepam and clorazepate. The prescription drugs are anti-anxiety medications and are widely used in the treatment of Alzheimer’s disease.

“This is great news, really great news,” said Bill Miller, owner of Miller Drug in Bangor. “A lot of people were upset when Mylan jacked up the prices, and they really raised them. It’s good to see they got caught.”

The suit, filed in 1998, charged that Mylan obtained a monopoly of the raw materials used in making the drugs, and then sharply raised prices on the drugs – by more than 2,000 percent in some cases. Lorazepam, often called Zanex, is widely prescribed to seniors. It is an anti-anxiety drug and is frequently used in nursing homes.

“This is one of the more major multistate class action suits we have,” said Assistant Attorney General Francis Ackerman, head of the Consumer Protection Division. “I can’t tell you how many people in Maine were prescribed the drugs, but I know it is a significant number.”

State taxpayers will also benefit from the settlement. Maine will get $423,558 as its share of the $28 million set aside to reimburse states for drug overpayments. Maine’s Medicaid program, which provides drug coverage to more than 27,000 poor and disabled Mainers, spent more than $1.2 million for lorazepam last year.

“This is one of the more widely prescribed drugs,” Ackerman said. “This is an important case and this settlement is significant.”

Calls to the Pittsburgh headquarters of Mylan Labs were not returned.

Under terms of the agreement, given preliminary approval by Federal District Court Judge Thomas Hogan last week, individuals who purchased the drugs between Jan. 1, 1998, and Dec. 31, 1999, must file a claim to receive any payment. Anyone reimbursed for the drug purchase by insurance is not eligible for payments under the settlement.

“Applications must be filed between June 1, 2001, and Sept. 29, 2001,” said Special Assistant Attorney General Charles Dow. “Checks may be sent out as early as Jan. 1, 2002, if the judge approves the final settlement by then.”

The Attorney General’s office is sending a letter to all pharmacies in the state informing them of the settlement and seeking help in identifying those who may be eligible for payment. There will also be newspaper ads and posters distributed to encourage application for payments under the settlement agreement.

“We will work with them, but it will be a mess,” Miller said. “We can search through our computer records, but there will be a lot of nursing home patients and one time prescriptions. And a lot of these people will have passed away.”

Ackerman acknowledged the number of persons who file claims in such settlement actions has not been very good. But, he said the court recognized that in requiring the advertising effort to reach those eligible under terms of the agreement.

Peter Thompson, a Kennebunk-based attorney with the Pharmaceutical Access Litigation Project, praised the settlement. He said it is just one more example of the inflated prices many drug companies are charging.

“We are pleased the attorneys general in this many states took this action,” he said. “We have filed similar suits on behalf of individuals, and we will be filing more.”

The Pharmaceutical Access Litigation Project is active in 16 states, including Maine. The national coalition set up by various consumer advocacy groups to coordinate legal action against the drug industry.

Ackerman said Maine has similar suits pending against other drug companies. He said his office is always reviewing complaints filed by other states and consumer advocates, and additional lawsuits are certainly possible.