Attorney General Bob Ferguson, along with a bipartisan coalition of attorneys general, has secured over $49 million in a case against major drug manufacturers accused of conspiring to raise prices on hundreds of generic drugs. The alleged price-fixing scheme reportedly caused consumers to pay more than ten times the original price for some medications.
Apotex has agreed to pay $39.1 million and Heritage Pharmaceuticals will contribute $10 million. Both companies will also implement reforms and cooperate in ongoing litigation against other firms. Washington state's share of the settlements will be determined once all cases are resolved, allowing residents who purchased affected drugs to claim refunds through a formal process.
“These companies conspired to line their pockets at the expense of Washingtonians,” said Ferguson. “Their conspiracy made it harder for people to afford medications they rely on for their health, and even their life. I will hold them accountable.”
Legal proceedings continue in the U.S. District Court of the District of Connecticut against 30 corporations and 25 executives accused of violating antitrust laws, including the Washington Consumer Protection Act. The attorneys general argue that this conspiracy is among the most damaging illegal price-fixing schemes in U.S. history.
Company representatives allegedly used code words during private meetings to coordinate price hikes on generic drugs, sometimes increasing prices by over 1,000 percent. Some female sales representatives reportedly used "girls’ night out" as cover for these discussions. Executives are also accused of destroying evidence upon learning about subpoenas related to the investigation.
Individuals who bought generic prescription drugs between 2010 and 2018 may qualify for restitution from current or future settlements by visiting www.AGGenericDrugs.com or contacting designated helplines.
The coalition's lawsuits address different sets of drugs and defendants: one targets Heritage Pharmaceuticals' involvement with other firms in fixing prices on 15 drugs; another focuses on 20 companies manipulating prices for over 100 drugs; and a third concerns pricing schemes involving topical dermatology treatments.
During this period, industry gatherings provided venues for conspirators to discuss pricing strategies using terms like "fair share" and "playing nice in the sandbox." The lawsuits aim to secure restitution for consumers, state damages, civil penalties, and measures to prevent future collusion.
The Antitrust Division continues to investigate potential anti-competitive activities, encouraging public complaints through official channels.