AUTHORIZING CLASS ACTION LAWSUIT PARTICIPATION (In re Dental Supplies Antitrust Litigation)

Committee Status: 
Approved
Budget Status: 
No Fiscal Impact
Decision Impact: 
Routine
FTE Impact: 
No
Funding Source: 
Other (see budget status)

Purpose

Authorize staff to take necessary actions to include Sauk County in class action suit/settlement.

Background

On February 25, 2019, the Sauk County Health Department received notice of proposed settlement in a class action lawsuit in a United States District Court in New York from the plaintiff’s counsel. The lawsuit alleges that certain suppliers of dental products agreed to not compete on prices contrary to federal antitrust law. The named defendants have denied the claims and the court has not ruled on the merits of the case. But, the defendants have agreed to an $80 million cash settlement to resolve the matter. The settlement is for a class that includes anyone in the U.S. who purchased dental products from the defendants between August 31, 2008 and March 31, 2016. The net settlement proceeds will be allocated pro-rata, based on relative purchase amounts for each class member. The Sauk County Health Department purchased $59,315.98 worth of dental products from two of the named defendants between 2009 and 2018. In order to secure a pro-rata share of the settlement proceeds, Sauk County will be required to submit a number of forms and other documents in the coming months if the settlement is approved by the trial court. Submission of the forms and documents will require minimal staff time and, therefore, almost no cost to Sauk County, but are required if Sauk County wishes to recover its share of the net settlement proceeds. County Board approval is necessary for staff to authorize participation in the lawsuit and submit required documents on behalf of Sauk County.

Resolution Body

[Text Box: Background: On February 25, 2019, the Sauk County Health Department received notice of proposed settlement in a class action lawsuit in a United States District Court in New York from the plaintiff’s counsel. The lawsuit alleges that certain suppliers of dental products agreed to not compete on prices contrary to federal antitrust law. The named defendants have denied the claims and the court has not ruled on the merits of the case. But, the defendants have agreed to an $80 million cash settlement to resolve the matter. The settlement is for a class that includes anyone in the U.S. who purchased dental products from the defendants between August 31, 2008 and March 31, 2016. The net settlement proceeds will be allocated pro-rata, based on relative purchase amounts for each class member. The Sauk County Health Department purchased $59,315.98 worth of dental products from two of the named defendants between 2009 and 2018. In order to secure a pro-rata share of the settlement proceeds, Sauk County will be required to submit a number of forms and other documents in the coming months if the settlement is approved by the trial court. Submission of the forms and documents will require minimal staff time and, therefore, almost no cost to Sauk County, but are required if Sauk County wishes to recover its share of the net settlement proceeds. County Board approval is necessary for staff to authorize participation in the lawsuit and submit required documents on behalf of Sauk County.] [Text Box: Fiscal Impact: [ X ] None [ ] Budgeted Expenditure [ ] Not Budgeted]

NOW, THEREFORE, the Sauk County Board of Supervisors, met in regular session, authorizes the participation of Sauk County as a party in the class action lawsuit In re Dental Supplies Antitrust Litigation and authorizes Sauk County Corporation Counsel, Daniel M. Olson, to complete and file the necessary forms and documents to include Sauk County in the lawsuit and proposed settlement.

For consideration by the Sauk County Board of Supervisors on March 19, 2019.

 

Respectfully submitted,

 

EXECUTIVE & LEGISLATIVE COMMITTEE

 

 

 

_________________________________                  _________________________________

peter vedro, Chair                                              WILLIAM HAMBRECHT

 

 

_________________________________                  _________________________________

WALLY CZUPRYNKO                                           WILLIAM WENZEL                       

 

 

_________________________________                 

THOMAS KRIEGL                                                   Fiscal Note:  No cost. May be financial benefit.

MIS Note:   No information systems impact

Requested Board Review Date: 
Tuesday, March 19, 2019