Attorney General Josh Kaul has revealed two major settlements and cooperation agreements involving Heritage Pharmaceuticals and Apotex, totaling $49.1 million. These settlements are part of ongoing multistate litigation concerning allegations that the companies inflated prices, reduced competition, and restrained trade related to several generic prescription drugs. Both companies have agreed to cooperate in the ongoing legal proceedings against 30 corporate defendants and 25 individual executives, alongside committing to internal reforms for fair competition and antitrust compliance.
A preliminary approval motion for a $10 million settlement with Heritage is set to be filed today in the U.S. District Court for the District of Connecticut in Hartford. Meanwhile, a $39.1 million settlement with Apotex awaits signatures from necessary states and territories before it can be finalized and submitted to court.
“Wisconsinites shouldn’t have to pay more for their prescriptions because prices were improperly inflated,” stated Attorney General Josh Kaul. “The Wisconsin Department of Justice will continue working to protect Wisconsinites’ pocketbooks against anticompetitive conduct.”
These developments coincide with preparations for an upcoming trial scheduled in Hartford, Connecticut. Individuals who purchased generic prescription drugs manufactured by either company between 2010 and 2018 may qualify for compensation.
The settlements stem from three antitrust complaints initiated since 2016. The first complaint included Heritage among 17 other corporate defendants, two individuals, and covered 15 generic drugs. Former Heritage executives Jeffery Glazer and Jason Malek have settled and are cooperating with authorities. The second complaint was lodged in 2019 against Teva Pharmaceuticals along with other major manufacturers, naming 16 senior executive defendants. The third complaint addresses 80 topical generic drugs worth billions in sales, naming multiple corporate and individual defendants.
Additional pharmaceutical executives have also reached settlement agreements with states involved, supporting claims across all three cases.
States participating in today's announcement include Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Northern Mariana Islands Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Utah U.S Virgin Islands Vermont Virginia Washington West Virginia Wyoming Puerto Rico