Proposed Plan of Allocation

Step 1: create a pool for Thalomid (5.5%) and a pool for Revlimid (94.5%) based on percent of damages estimates by Dr. Leitzinger

Step 2: separate each pool into separate pots for consumers and TPPs based on percent of damages, averaging allocation from Leitzinger report of overcharge and unjust enrichment:

• Thalomid consumer share = 15.5%
• Thalomid TPP share = 84.5%
• Revlimid consumer share = 13.5%
• Revlimid TPP share = 86.5%

Step 3: pro rata allocation among consumers / pro rata allocation among TPPs

• Consumers – estimate of dollars spent on medication (pro rata by dollars spent, whether copays, coinsurance, or other out of pocket).
• TPPs – transaction data (pro rata by dollars spent)

 Described in the notice/court papers:

The Plan of Allocation is as follows: the Net Settlement Fund will be divided into four pools of funds based on Dr. Leitzinger’s calculations as to the allocation of damages. Based on these calculations, 5.5% of the Net Settlement Fund will go to Thalomid purchasers (with 15.5% allocated to consumers and 84.5% allocated to third party payors). The remaining 94.5% of the Net Settlement Fund will go to Revlimid purchasers, of which 13.5% will be allocated to consumers, and 86.5% will be allocated to third party payors. Eligible Claimants shall be paid out of each Allocation Pool for which they are eligible. For consumers, the allocation will be determined based on the amount each consumer claimant spent on the drug as a percentage of the total amount spent by all consumer claimants. For third party payors, the allocation will be determined based on the amount each TPP claimant spent as a percentage of the total amount spent by all TPP claimants.