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Board authorizes superintendent to sign on to insulin‑pricing litigation with city
Summary
Norwalk’s school board on July 15 authorized Superintendent Dr. Alexandra Estrella to execute documents to join a class action alleging inflated insulin pricing; district counsel said there is no cost to join and any recovery would be shared between the city, district and affected employees according to calculated losses.
The Norwalk Board of Education on July 15 authorized Superintendent Dr. Alexandra Estrella to execute agreements and engagement letters to retain outside counsel and join a class‑action lawsuit alleging inflated insulin pricing by manufacturers and pharmacy benefit managers.
District counsel and staff said the suit targets insulin manufacturers (Eli Lilly, Novo Nordisk and Sanofi) and pharmacy benefit managers over alleged anti‑competitive or deceptive pricing practices that they say artificially raised insulin costs during a period when the district administered a self‑insured pharmacy benefit. The board heard that the city’s common council approved joining the litigation on June 24 and that the mayor had already signed documents for the city.
No immediate cost to district: Counsel told the board there is no out‑of‑pocket cost to the district to participate; attorneys in the litigation will work on contingency and any recovery would be distributed proportionally to entities and individuals that experienced losses. Counsel said the district and city were potentially eligible because Norwalk was self‑insured with Express Scripts for prescription benefits during the period alleged in the suits; presenters referenced both an alleged overcharge period beginning around 2002 and a timeframe described elsewhere in the presentation as 2004–2017.
Board action and vote: A motion to authorize the superintendent to sign necessary documents was moved by board member Cara Bakey and seconded by Jasmine Presse; the board approved the motion unanimously.
Next steps: District counsel will handle evidentiary work, contract retrieval and legal proceedings; staff said that the attorneys will do most of the substantive courtroom and discovery work and that the district would be informed if an executive session or additional board action is appropriate.
What the board was told not to expect: Presenters said there is no immediate timeline for resolution and that recovery, if any, would take time once firms pursue claims in court. Counsel listed several Connecticut cities and school districts already participating in similar litigation.
