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Saturday, November 2, 2024

Generic drug pricing settlements total over $49 million

State AG
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Illinois Attorney General Kwame Raoul | Official Website

Attorney General Kwame Raoul, along with a coalition of 50 attorneys general, has announced two settlements with Heritage Pharmaceuticals and Apotex Corp. totaling $49.1 million. These agreements resolve allegations that the companies were involved in conspiracies to inflate drug prices and limit competition for generic prescription drugs.

The settlements include cooperation from both companies in ongoing litigation against 30 corporate defendants and 25 individual executives. Heritage and Apotex have also agreed to implement internal reforms and comply with antitrust laws.

Raoul stated, "Too many Americans are forced to choose between paying for everyday necessities like rent or groceries and life-saving prescriptions. These settlements are a step in the right direction, toward holding drug companies accountable for outrageous profits at the expense of residents who rely on what are supposed to be more affordable generic drugs."

A $10 million settlement with Heritage is being filed in the U.S. District Court for the District of Connecticut, while a $39.1 million settlement with Apotex will be finalized soon.

These settlements follow three antitrust complaints filed by nearly all states and territories since 2016. The first complaint involved Heritage and several other defendants, leading to cooperation from former executives Jeffery Glazer and Jason Malek.

The second complaint was filed in 2019 against Teva Pharmaceuticals and other major generic drug manufacturers, naming multiple senior executive defendants. The third complaint focuses on topical generic drugs accounting for billions in sales.

The cases stem from investigations involving evidence from cooperating witnesses, a large document database, and phone records detailing communications among industry executives. These communications included terms like "fair share" and "playing nice in the sandbox," indicating unlawful practices.

Consumers who purchased generic drugs from Heritage or Apotex between 2010 and 2018 may be eligible for compensation by contacting 866-290-0182 or visiting www.AGGenericDrugs.com.

Joining Raoul are attorneys general from numerous states including Alaska, California, Florida, New York, Texas, Virginia, Washington, among others.

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