In re: Suboxone Antitrust v. ( 2020 )


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  •                                            PRECEDENTIAL
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    ______________
    No. 19-3640
    ______________
    In re: Suboxone (Buprenorphine Hydrochlorine and
    Naloxone) Antitrust Litigation
    Indivior Inc. f/k/a Reckitt Benckiser Pharmaceuticals, Inc.,
    Appellant
    ______________
    On Appeal from the United States District Court
    for the Eastern District of Pennsylvania
    (D.C. No. 2-13-md-02445)
    District Judge: Honorable Mitchell S. Goldberg
    ______________
    Argued July 1, 2020
    ______________
    Before: GREENAWAY, JR., SHWARTZ, and RENDELL,
    Circuit Judges.
    (Filed: July 28, 2020)
    ______________
    Bruce E. Gerstein
    Joseph Opper
    Garwin Gerstein & Fisher
    Wall Street Plaza
    88 Pine Street, 10th Floor
    New York, NY 10036
    Counsel for Plaintiff-Appellee Burlington Drug Co.
    Inc.
    Thomas M. Sobol
    Hagens Berman Sobol Shapiro
    55 Cambridge Parkway
    Suite 301
    Cambridge, MA 02142
    Counsel for Plaintiff-Appellees Meijer Inc. and Meijer
    Distribution Inc.
    Caitlin G. Coslett
    David F. Sorensen
    Berger Montague
    1818 Market Street
    Suite 3600
    Philadelphia, PA 19103
    Peter Kohn [ARGUED]
    Faruqi & Faruqi
    1617 John F. Kennedy Boulevard
    Suite 1550
    Philadelphia, PA 19103
    Counsel for Plaintiff-Appellee Rochester Drug
    2
    Cooperative Inc.
    Jonathan B. Berman [ARGUED]
    Jones Day
    51 Louisiana Avenue, N.W.
    Washington, DC 20001
    James R. Saywell
    Jones Day
    901 Lakeside Avenue
    North Point
    Cleveland, OH 44114
    Counsel for Defendant-Appellant Indivior Inc., f/k/a
    Reckitt Benckiser Pharmaceuticals Inc.
    Anthony Russomanno
    Wisconsin Department of Justice
    P.O. Box 7857
    Madison, WI 53707
    Counsel for Amicus State of Wisconsin in support of
    Appellees
    Randy Stutz
    10418 Ewell Avenue
    Kensington, MD 20895
    Counsel for Amicus American Antitrust Institute in
    support of Appellees
    3
    ______________
    OPINION
    ______________
    SHWARTZ, Circuit Judge.
    Indivior,     Inc.,   formerly     Reckitt     Benckiser
    Pharmaceuticals, Inc. (“Reckitt”), manufactured Suboxone, a
    prescription drug used to treat opioid addiction. Direct
    purchasers of Suboxone (“Purchasers”) allege that Reckitt
    engaged in anticompetitive conduct that impeded the entry of
    generic versions of the drug into the market in violation of § 2
    of the Sherman Act, 
    15 U.S.C. § 2
    . In a thorough, thoughtful,
    and well-reasoned opinion, the District Court certified a class
    of those who purchased Suboxone from Reckitt, and Reckitt
    appeals the certification order. We will affirm.
    I
    A
    We first explain how prescription drugs enter the
    market. A company wishing to offer a new drug for sale must
    seek approval from the Food and Drug Administration
    (“FDA”) by filing a New Drug Application (“NDA”). Mylan
    Pharms. Inc. v. Warner Chilcott Pub. Ltd. Co., 
    838 F.3d 421
    ,
    427 (3d Cir. 2016) (citing 
    21 U.S.C. § 355
    ). Once the drug is
    approved for sale, it is considered a “brand” or “brand-name”
    drug. 
    Id.
     To increase competition and reduce prices, Congress
    enacted a streamlined method for generic manufacturers to
    introduce drugs by allowing them to “piggy-back” on the brand
    drug’s “approval efforts.” FTC v. Actavis, Inc., 
    570 U.S. 136
    ,
    4
    142 (2013). Specifically, a generic drug maker may submit an
    Abbreviated New Drug Application (“ANDA”) that may “rely
    on a name-brand drug company’s original NDA approval for a
    particular drug in order to gain quicker, less costly FDA
    approval of a generic version.” Mylan, 838 F.3d at 427.
    If a generic drug manufacturer demonstrates that “the
    proposed generic product is both a ‘bioequivalent’ and a
    ‘pharmaceutical’ equivalent of the name-brand drug,” then it
    may “have [its] product deemed ‘AB-rated’ to the name-brand
    drug by the FDA.” Id. at 427-28.1 State laws either allow or
    require pharmacists to substitute these AB-rated, lower-cost
    generic drugs for a name-brand version. Id. at 428. Due to
    such substitution laws and the generic drugs’ low cost, generics
    often significantly erode a brand drug’s market share. See In
    re: Suboxone (Buprenorphine Hydrochloride & Naloxone)
    Antitrust Litig. (Motion to Dismiss), 
    64 F. Supp. 3d 665
    , 673
    (E.D. Pa. 2014).
    B
    Reckitt developed Suboxone tablets. The FDA granted
    Reckitt a seven-year period of exclusivity in which other
    manufacturers could not introduce generic versions of
    Suboxone tablets. As the exclusivity period neared its end for
    its brand drug, Reckitt developed an under-the-tongue film
    1
    An “AB-rating” denotes that the generic is
    “bioequivalent” and “pharmaceutically equivalent to the brand
    drug, meaning it has the same active ingredient, dosage form,
    strength, and route of administration as the brand drug.” New
    York ex rel. Schneiderman v. Actavis PLC, 
    787 F.3d 638
    , 645
    (2d Cir. 2015).
    5
    version of Suboxone, which would enjoy its own exclusivity
    period. Generic versions of Suboxone tablets would not be
    AB-rated to Suboxone film, so state substitution laws would
    not require pharmacists to substitute generic Suboxone tablets
    if a patient were prescribed Suboxone film.
    According to the Purchasers, Reckitt’s transition to
    Suboxone film was coupled with efforts to eliminate demand
    for Suboxone tablets and to coerce prescribers to prefer film.
    To that end, Reckitt allegedly: (1) engaged in a widespread
    campaign falsely disparaging Suboxone tablets as more
    dangerous to children and more prone to abuse; (2) publicly
    announced that it would withdraw Suboxone tablets from the
    market due to these safety concerns; (3) ended its Suboxone
    tablet rebate contracts with managed care organizations in
    favor of Suboxone film rebate contracts; (4) increased tablet
    prices above film prices; (5) withdrew brand Suboxone tablets
    from the market; and (6) impeded and delayed the market entry
    of generic Suboxone tablets by manipulating the FDA’s Risk
    Evaluation and Mitigation Strategy (“REMS”) process2 and
    2
    The FDA can require REMS from manufacturers to
    ensure that the benefits of a drug outweigh its risks. 
    21 U.S.C. § 355-1
    (a)(1). A REMS can include elements such as
    medication guides, package inserts, and communication plans
    for healthcare providers. § 355-1(e). If the FDA requires a
    REMS for a generic product, the FDA can require that the
    ANDA sponsor coordinate with the brand-name to create a
    Single Shared REMS program. § 355-1(i). However, brand-
    name manufacturers cannot use REMS “to block or delay
    approval of” ANDAs. § 355-1(f)(8).
    6
    filing a baseless citizen petition.3 Through these actions,
    Reckitt shifted the market to Suboxone film by the time generic
    Suboxone tablets hit the market and continued to dominate the
    Suboxone market as the exclusive maker of Suboxone film.
    The Purchasers sued Reckitt,4 alleging that its efforts to
    suppress generic competition amounted to unlawful
    maintenance of monopoly power, in violation of § 2 of the
    Sherman Act. The Purchasers moved to certify a class of “[a]ll
    persons or entities . . . who purchased branded Suboxone
    tablets directly from Reckitt” during a specified period. App.
    5-6. The proposed class representatives were Burlington Drug
    Company, Inc. and two other purchasers. Burlington’s
    corporate designee testified that although Burlington was not
    “control[ling]” class counsel, Burlington is aware it is a
    “fiduciary” for the class, understands the injury claimed, and
    has been kept apprised of activities in the case. App. 186. In
    addition, Burlington has produced thousands of pages of
    electronic transaction level data reflecting purchases, charge
    backs, and sales of Suboxone tablets, as well as documents
    from the electronic files of ten employees.
    In support of class certification, the Purchasers
    submitted an expert report by Dr. Russell Lamb, an economist.
    Dr. Lamb concluded that, due to Reckitt’s allegedly
    3
    Persons or entities can raise concerns to the FDA
    regarding drug approvals through a citizen petition, and “[t]he
    filing of a citizen petition can substantially delay approval of a
    generic drug.” FTC v. Shire ViroPharma, Inc., 
    917 F.3d 147
    ,
    152 (3d Cir. 2019). Congress has passed restrictions on using
    citizen petitions to delay drug approvals. 
    Id.
     at 152 n.7.
    4
    This appeal concerns only the Purchasers.
    7
    anticompetitive conduct, the proposed class paid more for
    brand Suboxone products.5 Dr. Lamb attributed these
    overcharges to Reckitt’s actions that: (1) suppressed generic
    tablet competition, so the Purchasers had to buy brand tablets
    or film instead of less expensive generic tablets; (2) delayed
    market entry of generic tablets, increasing the time more
    expensive brand tablets could dominate the market; and
    (3) increased the price of brand tablets. To reach these
    conclusions, Dr. Lamb relied on internal Reckitt documents
    reflecting its national Suboxone strategy and economic
    analysis of tablet pricing. Dr. Lamb also calculated the
    damages attributable to this injury. Using economic modeling
    and data from Reckitt, he estimated, in the aggregate, the
    difference between the actual prices charged for brand
    Suboxone tablets and film and the price class members would
    have paid for generic and non-Reckitt-brand versions.
    The District Court certified the class. In re: Suboxone
    (Buprenorphine Hydrochloride & Naloxone) Antitrust Litig.
    (Class Certification), 
    421 F. Supp. 3d 12
    , 26 (E.D. Pa. 2019).
    As relevant to this appeal, the Court held that (1) common
    evidence of injury and damages showed that the Purchasers
    paid more for brand Suboxone products than they would have
    5
    As the Purchasers clarified at oral argument, the class
    consists of direct purchasers of name-brand Suboxone tablets,
    but the alleged injuries are for paying more for name-brand
    tablets and, for certain members who also purchased film,
    paying more for film as a result of Reckitt’s alleged
    anticompetitive conduct.       Therefore, the damages the
    Purchasers seek are overcharges for name-brand tablets, and
    paying more for name-brand tablets and film than they would
    have for generic tablets.
    8
    for generic tablets due to Reckitt’s actions to promote film,
    disparage tablets, and suppress generics’ market entry, 
    id. at 62-63
    ; (2) although the Purchasers’ aggregate damages model
    did not allocate damages among class members, “[i]ssues
    regarding allocation of individual damages [were] insufficient
    to defeat class certification,” 
    id. at 64
    ; and (3) Burlington was
    an adequate class representative because it had the requisite
    knowledge of the litigation, including “the basis for the
    claimed injury,” and its interests aligned with the class, 
    id. at 51
    . Reckitt appeals.
    II6
    Federal Rule of Civil Procedure 23 sets forth the
    requirements for class certification. Gonzalez v. Corning, 
    885 F.3d 186
    , 192 (3d Cir. 2018). As relevant here, Rule 23(b)(3)
    requires that common questions predominate and Rule 23(a)(4)
    requires that the named plaintiffs adequately represent the
    class, two requirements Reckitt disputes are satisfied.
    6
    The District Court had jurisdiction under 
    28 U.S.C. §§ 1331
     and 1337(a), and 
    15 U.S.C. § 15
    (a). We have
    jurisdiction under 
    28 U.S.C. § 1292
    (e) and Federal Rule of
    Civil Procedure 23(f).
    “We review a class certification order for abuse of
    discretion, which occurs if the district court’s decision rests
    upon a clearly erroneous finding of fact, an errant conclusion
    of law or an improper application of law to fact.” Grandalski
    v. Quest Diagnostics Inc., 
    767 F.3d 175
    , 179 (3d Cir. 2014)
    (internal quotation marks and citation omitted).
    9
    A
    Rule 23(b)(3) requires that “questions of law or fact
    common to class members predominate over any questions
    affecting only individual members.” Fed. R. Civ. P. 23(b)(3).
    “To assess predominance, a court . . . must examine each
    element of a legal claim through the prism of Rule 23(b)(3)”
    by determining whether each element is “capable of proof at
    trial through evidence that is common to the class rather than
    individual to its members.” Marcus v. BMW of N. Am., LLC,
    
    687 F.3d 583
    , 600 (3d Cir. 2012) (internal quotation marks and
    citations omitted). The Purchasers’ claims require them to
    prove (1) “a violation of the antitrust laws” (here, unlawful
    monopolization by Reckitt);7 (2) “individual injury resulting
    from that violation”; and (3) “measurable damages.” In re
    Hydrogen Peroxide Antitrust Litig., 
    552 F.3d 305
    , 311 (3d Cir.
    2008), as amended (Jan. 16, 2009).
    1
    Reckitt first argues that the Purchasers have not
    provided common evidence of injury or damages8 that matches
    7
    Section 2 of the Sherman Act makes it unlawful to
    “monopolize, or attempt to monopolize . . . any part of the
    trade or commerce among the several States.” 
    15 U.S.C. § 2
    .
    8
    “Proof of injury (whether or not an injury occurred at
    all) must be distinguished from calculation of damages (which
    determines the actual value of the injury).” In re Lamictal
    Direct Purchaser Antitrust Litig., 
    957 F.3d 184
    , 194-95 (3d Cir.
    2020) (quoting Newton v. Merrill Lynch, Pierce, Fenner &
    Smith, Inc., 
    259 F.3d 154
    , 188 (3d Cir. 2001), as amended
    (Oct. 16, 2001)).
    10
    a viable theory of liability, as required by Comcast Corp. v.
    Behrend, 
    569 U.S. 27
    , 37-38 (2013) (holding that class
    certification was inappropriate when a damages model
    reflected injury from four antitrust injuries, but only one viable
    theory of antitrust liability and injury remained in the case).
    Reckitt does not dispute that the Purchasers have provided
    common evidence showing that the class paid more for
    Suboxone products. Reckitt, however, argues that it could
    lawfully raise the prices on Suboxone tablets and change its
    rebate program,9 so the Purchasers do not have an antitrust
    injury.
    The Purchasers’ theory of their case, however, “is not
    [simply] that Reckitt’s pricing of brand tablets individually
    caused harm.” Class Certification, 421 F. Supp. 3d at 62.
    Rather, they allege that the totality of Reckitt’s actions, such as
    raising prices, withdrawing tablets from the market, providing
    rebates only for film, disparaging the safety of tablets, and
    delaying the generics’ entry by filing a citizen petition and not
    cooperating in the REMS process, suppressed generic
    competition and thus violated the antitrust laws. They contend
    that such conduct resulted in the following antitrust injury:
    having to pay more for brand Suboxone products when less-
    expensive generic tablets should have been available but were
    not because of Reckitt’s actions.10 Reckitt incorrectly asks us
    9
    Reckitt acknowledges, however, that nonpricing
    conduct, such as the allegations that Reckitt falsely disparaged
    the tablets’ safety, if proven, would be unlawful and subject to
    common evidence.
    10
    Reckitt’s price-cost argument is inapt. This case is
    not one involving a pricing scheme alone. Rather, this case
    includes a scheme to suppress generic competition through a
    11
    to examine each of these acts individually. Rather, we look at
    “all the acts taken together [to determine whether they] show
    the willful acquisition or maintenance of a monopoly.”
    Bonjorno v. Kaiser Aluminum & Chem. Corp., 
    752 F.2d 802
    ,
    813 (3d Cir. 1984); see also Phila. Taxi Ass’n, Inc. v. Uber
    Techs., Inc., 
    886 F.3d 332
    , 339 (3d Cir.) (explaining that we
    “look to the monopolist’s conduct taken as a whole rather than
    considering each aspect in isolation” (citation omitted)), cert.
    denied, 
    139 S. Ct. 211
     (2018). The common evidence here
    would be used to prove that these actions occurred and together
    suppressed generic competition, and thereby caused the
    Purchasers to buy the higher-priced brand Suboxone products
    because Reckitt’s actions made it difficult for the less
    expensive generics to compete.11 Thus, common evidence
    series of actions that will be proven by common evidence.
    Higher tablet pricing and the cancellation of tablet rebates were
    just two acts used to keep generic tablets out of the market, and
    which led the Purchasers to pay for higher priced Suboxone
    tablets when, in a competitive market, they would have been
    able to purchase less expensive generic tablets. When
    reviewing similar allegations, we have held that common
    evidence that class members paid higher prices than they
    otherwise would have easily satisfies the predominance
    standard. In re Warfarin Sodium Antitrust Litig., 
    391 F.3d 516
    ,
    528 (3d Cir. 2004).
    11
    Reckitt relies mainly on Comcast, 
    569 U.S. 27
    , to
    argue that the Purchasers’ theory of injury for which they have
    common evidence does not match any viable theory of
    liability, so certification is wrong. Comcast is distinguishable.
    In Comcast, plaintiffs alleged four theories of antitrust injury,
    but the district court certified a class based on one theory. 
    569 U.S. at 31
    . The damages model plaintiffs used estimated
    12
    exists to prove the Purchasers’ antitrust theory and the resulting
    injury.
    2
    Next, Reckitt argues that the Purchasers did not satisfy
    the predominance requirement because their damages model
    only calculates aggregate damages, and the eventual need for
    damages based on the combined effects of all four theories; but
    the district court held that certification was still proper. 
    Id. at 31-32
    . The Supreme Court held that class certification was
    wrong because “the model failed to measure damages resulting
    from the particular antitrust injury on which petitioners’
    liability in this action is premised.” 
    Id. at 36
    . That is, the
    model “identifie[d] damages that are not the result of the
    wrong” suffered by the certified class. 
    Id. at 37
    .
    This case is unlike Comcast because there is only one
    theory of antitrust injury, and that theory corresponds to a
    theory of liability. To make Comcast seem applicable, Reckitt
    construes the Purchasers’ claim as one alleging that Reckitt
    unlawfully raised prices (the liability theory, which Reckitt
    argues is not viable), and the Purchasers paid higher prices as
    a result (the injury theory). Raising prices, however, was just
    one aspect of Reckitt’s alleged monopolistic conduct, which is
    better described as a multifaceted yet single scheme to move
    the market to Suboxone film to stifle competition from generic
    tablets. As a result, the Purchasers could not purchase less-
    expensive generic tablets. Thus, while Reckitt would argue
    that each of the six allegedly anticompetitive actions represents
    a different theory of liability, in fact there is one theory of
    liability proven by a variety of acts resulting in one antitrust
    injury.
    13
    individualized damages inquiries defeats predominance.
    Reckitt is incorrect. Antitrust plaintiffs may satisfy the
    predominance requirement by using a model that estimates the
    damages attributable to the antitrust injury, even if more
    individualized determinations are needed later to allocate
    damages among class members. In re Modafinil Antitrust
    Litig., 
    837 F.3d 238
    , 262 (3d Cir. 2016), as amended (Sept. 29,
    2016).12       For example, in Modafinil, a brand-name
    manufacturer entered into agreements with four manufacturers
    to hold off marketing generic versions of the drug, 
    id. at 245
    ,
    and direct-purchaser plaintiffs “created a damages model that
    calculated the savings to the class if generic entry had occurred
    earlier,” 
    id. at 262
    . The defendants argued that this model was
    insufficient because it did not “attribute a certain amount of
    harm” from each agreement or “identify which class members
    were harmed by which [agreement].” 
    Id.
     We rejected the need
    to show each class member suffered identical damages because
    “Plaintiffs’ theory of liability is not that each individual
    agreement caused an individual harm,” but instead “that each
    individual agreement contributed to the market-wide
    harm” and this “match[ed] Plaintiffs’ damages theory.” 
    Id.
    12
    See also Kleen Prods. LLC v. Int’l Paper Co., 
    831 F.3d 919
    , 929 (7th Cir. 2016) (upholding use of aggregate
    damages model and explaining that “at the class certification
    stage, plaintiffs are not obliged to drill down and estimate each
    individual class member’s damages,” as “the allocation of that
    total sum among the class members can be managed
    individually”); Vaquero v. Ashley Furniture Indus., Inc., 
    824 F.3d 1150
    , 1155 (9th Cir. 2016) (same); Carriuolo v. Gen.
    Motors Co., 
    823 F.3d 977
    , 988 (11th Cir. 2016) (same).
    14
    Like in Modafinil, the Purchasers’ model does not
    measure how Reckitt’s scheme harmed each class member and
    recognizes that there could be differences among the class
    members concerning the precise damages they suffered.
    Individualized determinations, however, are of no
    consequence in determining whether there are common
    questions concerning liability. See id.; see also Tyson Foods,
    Inc. v. Bouaphakeo, 
    136 S. Ct. 1036
    , 1045 (2016) (“[T]he
    action may be considered proper under Rule 23(b)(3) even
    though other important matters will have to be tried separately,
    such as damages . . . .” (citation omitted)). Rather, we need be
    assured only that common issues predominate. See Tyson
    Foods, 
    136 S. Ct. at 1045
    . Such is the case here because the
    Purchasers’ theory of injury and damages is provable and
    measurable by an aggregate model relying on class-wide
    data.13 Although allocating the damages among class members
    13
    To calculate aggregate damages, Dr. Lamb relied on
    Reckitt’s sales data and explained that he could allocate
    individualized damages based on this same data. Accordingly,
    even individualized damages assessments would require
    common evidence. Moreover, in this case, the class includes
    seventy-two direct purchasers seeking only to recover the
    money spent to buy name-brand Suboxone products that would
    not have been spent had generic competition existed, and not
    lost profits. Reckitt has produced their sales information.
    From this common evidence, the Purchasers proposed a trial
    plan for the pro rata allocation of Purchasers’ damages. See In
    re Lidoderm Antitrust Litig., No. 14-md-02521-WHO, 
    2017 WL 679367
    , at *11 (N.D. Cal. Feb. 21, 2017) (approving
    aggregate damages model using pro rata formula); see also
    Lamictal, 957 F.3d at 194-95 (observing that “damages need
    not be ‘susceptible of measurement across the entire class for
    15
    may be necessary after judgment, “such individual questions
    do not ordinarily preclude the use of the class action device.”
    Id. Thus, the District Court correctly found that common
    issues predominate.
    B
    Finally, Reckitt argues that Burlington is not an
    adequate class representative. Rule 23(a)(4) requires a district
    court to find that “representative parties will fairly and
    adequately protect the interests of the class.” Fed. R. Civ. P.
    23(a)(4). “The adequacy inquiry under Rule 23(a)(4) serves to
    uncover conflicts of interest between named parties and the
    class they seek to represent.” In re Nat’l Football League
    Players Concussion Injury Litig. (NFL), 
    821 F.3d 410
    , 431 (3d
    Cir. 2016) (quoting Amchem Prods., Inc. v. Windsor, 
    521 U.S. 591
    , 625 (1997)). For a class representative to be adequate, it
    must have “[a] minimal degree of knowledge” about the case,
    id. at 430 (quoting New Directions Treatment Servs. v. City of
    Reading, 
    490 F.3d 293
    , 313 (3d Cir. 2007)), and have no
    conflict of interest with class counsel, e.g., Larson v. AT&T
    Mobility LLC, 
    687 F.3d 109
    , 132 (3d Cir. 2012), and members
    of the class, Dewey v. Volkswagen Aktiengesellschaft, 
    681 F.3d 170
    , 183-84 (3d Cir. 2012).14 Only “fundamental”
    purposes of Rule 23(b)(3)’” (quoting Modafinil, 837 F.3d at
    260)).
    14
    Reckitt does not dispute that Burlington has a
    minimal degree of knowledge of the litigation.
    16
    conflicts “will defeat the adequacy requirement.” Dewey, 
    681 F.3d at 184
    .
    Reckitt argues that the Purchasers failed to satisfy the
    adequacy requirement because Burlington has a risk of a
    conflict with class counsel and lacks control over the litigation,
    precluding it from protecting the class. Both arguments fail.
    First, each conflict that Reckitt identifies is speculative or
    without basis. Reckitt suggests that class counsel and the class
    representative could have conflicting views on (1) what
    allegations should be made, (2) who should be named as a
    defendant, (3) whether to accept a settlement, (4) whether to
    go to trial, and (5) whether litigation decisions will have effects
    on other cases. Such hypothetical conflicts cannot defeat
    adequacy. 
    Id.
     (“A conflict that is unduly speculative, however,
    is generally not fundamental.”); see also 
    id.
     (noting that the
    adequacy requirement can be satisfied when “[a]t this stage in
    the litigation, the existence of such conflicts is hypothetical”
    (quoting Kohen v. Pac. Inv. Mgmt. Co. LLC, 
    571 F.3d 672
    ,
    680 (7th Cir. 2009))).15
    15
    Further, Reckitt’s hypothetical conflicts would apply
    to most class actions. For example, Reckitt suggests as one
    conflict that class representatives may seek to add defendants
    to increase potential recovery, while class counsel might avoid
    adding defendants due to “the cost of complicating the case”
    and “extending the timetable before resolution.” Appellant’s
    Br. at 50. Such a conflict is possible in many class actions.
    Ironically, however, this conflict is not even at risk in this case
    because the Purchasers’ allegations and facts focus exclusively
    on Reckitt, and there is no other defendant to add.
    17
    Second, Reckitt’s claim that Burlington has ceded
    control of this litigation to class counsel, and that this creates a
    risk of conflicts, does not render Burlington an inadequate
    representative. Reckitt cites no precedent from this Court for
    its argument that a class representative must “control” the
    litigation. Indeed, we have observed that “it is counsel for the
    class representative and not the named parties . . . who direct
    and manage [class] actions. Every experienced federal judge
    knows that any statements to the contrary [are] sheer
    sophistry.” In re Cmty. Bank of N. Va., 
    622 F.3d 275
    , 292 (3d
    Cir. 2010) (alterations and omission in original) (quoting
    Greenfield v. Villager Indus., Inc., 
    483 F.2d 824
    , 832 n.9 (3d
    Cir. 1973)). Moreover, Burlington is not a disengaged
    representative. The record shows that Burlington is aware of
    its role as a fiduciary, understands the basis for the claimed
    injury, has an incentive to recover its proportionate share of
    damages, monitors the litigation, produced documents, and has
    the requisite interest in and knowledge about the case to satisfy
    the adequacy requirement. NFL, 821 F.3d at 430; In re Gen.
    Motors Corp. Pick-Up Truck Fuel Tank Prods. Liab. Litig., 
    55 F.3d 768
    , 784 (3d Cir. 1995).
    Accordingly, Reckitt’s attack on Burlington’s adequacy
    as class representative lacks merit.
    III
    For the foregoing reasons, we will affirm the District
    Court’s order certifying a direct purchaser class.
    18