$49.1 million national settlement to resolve price-fixing allegations involving generic drugs
Indiana Attorney General Todd Rokita, as part of a coalition of 46 states and four territories, has secured $49.1 million in settlements to resolve allegations that two companies engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs.
The two companies represent only a fraction of those implicated in such alleged misconduct. Indiana and other states are pressing forward with lawsuits against the remaining companies not participating in the settlements.
“Hoosiers deserve to know that the prices they pay for generic drugs arise from free and fair competition among pharmaceutical companies,” AG Rokita said. “The fight is not over, and we continue to allege that company executives in this case colluded and conspired to keep prices high at their respective companies. We are holding them accountable for their egregious misconduct.”
As part of settlement agreements, the two companies have agreed to cooperate in ongoing multistate litigations against 30 corporate defendants and 25 individual executives. Both companies have further agreed to a series of internal reforms to ensure fair competition and compliance with antitrust laws.
A $10 million settlement with Heritage Pharmaceuticals is being filed Oct. 31 in the United States District Court for the District of Connecticut in Hartford. A settlement with Apotex for $39.1 million will be finalized and filed in the U.S. District Court in the near future. The State of Connecticut has led the multistate litigation efforts.
Indiana residents’ ultimate share of the money will be determined by how many request refunds. If you purchased a generic prescription drug manufactured by Heritage or Apotex between 2010 and 2018, you may be eligible for compensation. Call 1-866-290-0182 (toll-free), email info@AGGenericDrugs.com, or visit AGGenericDrugs.com to see if you are eligible.
A coalition of nearly all states and territories filed three antitrust complaints, starting first in 2016.
The first complaint included Heritage and 17 other corporate defendants, two individual defendants, and 15 generic drugs. Two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, have since entered into settlement agreements and are cooperating.
The second complaint was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The complaint names 16 individual senior executive defendants.
The third complaint, to be tried first, focuses on 80 topical generic drugs that account for billions of dollars of sales in the United States and names 26 corporate defendants and 10 individual defendants.
Six additional pharmaceutical executives have entered into settlement agreements with the states and have been cooperating to support the states’ claims in all three cases.