New York Attorney General Letitia James, alongside a coalition of 50 attorneys general, has announced settlements with Heritage Pharmaceuticals and Apotex Inc. The companies will pay a total of $49.1 million for their involvement in a scheme to inflate prices and limit competition for generic prescription drugs. These drugs are used to treat conditions such as diabetes, cancer, and ADHD.
Attorney General James stated, "Affordable generic drugs are a lifeline for millions of New Yorkers who rely on them every day to treat everything from diabetes to heart conditions." She added that the settlements aim to compensate victims and prevent future illegal price-fixing activities.
The settlements stem from lawsuits filed by the Office of the Attorney General and other state attorneys general against major pharmaceutical companies. The first lawsuit was filed in 2016 against Heritage and others, while subsequent complaints were filed in 2019 and 2020 against additional manufacturers like Teva Pharmaceuticals and Sandoz.
The lawsuits allege that these companies engaged in coordinated efforts to fix prices and rig bids for over 100 generic drugs. This conspiracy involved industry executives meeting at social events and communicating through calls, emails, and texts. Terms like "fair share" were reportedly used to describe their anti-competitive practices.
The investigation was supported by evidence from witnesses, documents, phone records, and contact information from the generics industry. A preliminary approval motion for Heritage's $10 million settlement was filed recently in Connecticut's District Court. Apotex's $39.1 million settlement awaits finalization pending necessary approvals.
Consumers who purchased affected drugs between 2010 and 2018 may be eligible for compensation by contacting provided resources.
Joining Attorney General James are attorneys general from states including California, Florida, Illinois, Texas, among others, as well as territories like Puerto Rico.
This action is part of ongoing efforts by Attorney General James to combat anti-competitive conduct. Previous actions include lawsuits against Live Nation and Ticketmaster for monopolizing the live music industry and securing settlements with title insurance companies over no-poach agreements.
The investigation was led by members of New York’s Antitrust Bureau under the Division for Economic Justice.