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Georgia joins multistate settlement over generic drug price-fixing

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Sunday, December 22, 2024

Georgia joins multistate settlement over generic drug price-fixing

State Supreme Court
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Attorney General Chris Carr | Ballotpedia

Attorney General Chris Carr announced that Georgia has joined a coalition of 50 states and territories in reaching settlements with Heritage Pharmaceuticals and Apotex. The agreements, totaling $49.1 million, address allegations of price-fixing and trade restraint concerning generic prescription drugs.

The settlement with Apotex includes a $17.6 million restitution fund for consumers, while the Heritage settlement provides a $3.8 million fund. Consumers who purchased generic drugs from these companies between 2010 and 2018 may be eligible for compensation by contacting the provided resources.

"Drug prices are a major concern for all Georgians, particularly our older adults, and consumers should know that the marketplace is fair and not fixed," said Carr. "We won’t stand by and allow any company to artificially increase costs on the backs of hardworking Georgians desperately in need of treatment and care."

Both companies have agreed to cooperate in ongoing litigation against 30 corporate defendants and 25 executives, as well as implement internal reforms to ensure compliance with antitrust laws.

The coalition has filed three antitrust complaints since 2016. The first complaint involved Heritage among others; two former executives have cooperated in settlements. A second complaint was filed in 2019 against large drug manufacturers, naming senior executives as defendants. The third complaint focuses on topical generic drugs worth billions in U.S. sales.

Investigations were supported by evidence from witnesses, documents, phone records, and contact information from industry individuals. Complaints describe meetings where competitors allegedly conspired to fix prices using terms like "fair share" and "responsible competitor."

Joining Attorney General Carr are attorneys general from numerous states including Alaska, California, Florida, Illinois, New York, Texas, Virginia among others.

ORGANIZATIONS IN THIS STORY

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