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Johnson and Johnson

This is a settlement for the Antitrust lawsuit.

A lawsuit in California against numerous contact lens manufacturers and the American Optometric Association was finally concluded after the final contact lens company, Johnson & Johnson, agreed to a $60 million settlement.

The lawsuit, filed first in March of 2001 in Florida, was in response to allegations that retail contact lens prices were inflated on purpose to force people to visit optometrists, as a deal between the makers and the optometrists.

The lawsuit was brought up by both the governments of over thirty states, including California, and by a group of consumers. Johnson & Johnson is paying $30 million of the $60 million in rebates to customers who bought disposable contact lens from 1988 to 2001.

Bausch and Lomb, another large manufacturer of contact lenses, is also paying $9.5 million in rebates. The rest of the settlement money is being put into funds or being paid out in rebates to former users of the contacts.

Rebates for current users will be the equivalent $100 per person, and former users have a choice between $35 cash or $50 in coupons. As well as payment, all involved companies have signed a written guarantee stating that they will change their selling practices. (May-22-01) [CALIFORNIA ATTORNEY GENERAL]

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Published on May-22-01


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