California joins 39 other states in suit against generic drugmakers for alleged conspiracy

By Mark Iandolo | Mar 9, 2017

LOS ANGELES (Legal Newsline) — California Attorney General Xavier Becerra announced March 1 that the state has joined a federal antitrust lawsuit with 39 other states against six generic drugmakers. The lawsuit alleges the defendants conspired to divide customers and markets as well as increase prices for two generic drugs.


“All consumers deserve fair and reasonable drug prices,” Becerra said. “[This] lawsuit represents one small step in what will be a robust and sustained challenge to anticompetitive practices in the pharmaceutical industry. My office is committed to combating wrongful drug company conduct on behalf of all consumers in California.”


The defendants in the case are Heritage Pharmaceuticals Inc., Aurobindo Pharma USA Inc., Citron Pharma LLC, Mayne Pharma (USA) Inc., Mylan Pharmaceuticals Inc. and Teva Pharmaceuticals USA Inc.

According to allegations, these companies allocated markets among themselves for doxycycline hyclate delayed release, an antibiotic, and glyburide, an oral diabetes medication. Each company purportedly agreed to sell only in their allocated market. Additionally, the defendants allegedly fixed prices of the drugs. According to the lawsuit, these actions – planned through meetings at industry trade shows, customer conferences and other events, as well as through direct email and phone messages – constitute illegal anticompetitive acts.

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