Bausch & Lomb settles antitrust lawsuit with consumer CL rebates

The lawsuit alleged that optometrists, acting through the American Optical Association, conspired with B&L, Ciba Vision and Johnson & Johnson to restrain competition in the sale of replacement contact lenses by refusing to make them available to pharmacies and mail-order firms. Although B&L believes the charges are unfounded it has agreed to give rebates and discounts to consumers who purchased replacement lenses by the three contact lens manufacturers in the past 13 years. Included in the package is a rebate for an eye examination and contact lenses and discount coupons for B&L products. B&L has also agreed to pay $8m into a settlement fund to cover the cost of the lawsuit, and to sell its lenses to alternative channels of distribution, including mail-order companies. The fourth quarter earnings for 2000 will be reduced by $15m. The settlement requires preliminary and final approval by the US District Court in Jacksonville, Florida. B&L is the second contact lens manufacturer to settle after Ciba Vision agreed to pay similar charges and contribute more than $6m, according to Associated Press. The court hearing for the two remaining companies, Johnson & Johnson Vision Products and the AOA, is scheduled to begin during March.