Attorney General William Tong has announced significant developments in a multistate litigation against generic drug manufacturers. The coalition, comprising 50 states and territories, has reached cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex totaling $49.1 million. These settlements address allegations of conspiracies to inflate prices and limit competition for various generic prescription drugs.
As part of the agreements, both companies will cooperate in ongoing litigations led by Connecticut against 30 corporate defendants and 25 individual executives. They have also committed to internal reforms to ensure compliance with antitrust laws. A motion for preliminary approval of a $10 million settlement with Heritage is being filed in the United States District Court for the District of Connecticut. Meanwhile, a $39.1 million settlement with Apotex awaits finalization upon obtaining necessary signatures from all involved states and territories.
Attorney General Tong stated, “Heritage and Apotex both participated in widespread conspiracies to jack up prices and block competition for generic prescription drugs. Their brazen collusion cost American families and our public healthcare programs millions of dollars.”
The first trial related to these cases is set to take place in Hartford, Connecticut. Individuals who purchased generic drugs from Heritage or Apotex between 2010 and 2018 may be eligible for compensation.
Connecticut’s Assistant Attorney General Joseph Nielsen leads the coalition that has filed three antitrust complaints since 2016 under former Attorney General George Jepsen's leadership. The first complaint included Heritage among other defendants, while subsequent complaints targeted Teva Pharmaceuticals and other major manufacturers.
The cases stem from investigations supported by evidence from cooperating witnesses, extensive document databases, phone records, and testimonies revealing illegal agreements among industry executives.
The announcement was joined by numerous states including Alaska, California, Florida, New York, Texas, Virginia, Washington among others.