Attorney General Keith Ellison has announced a total of $49.1 million in settlements with Heritage Pharmaceuticals and Apotex. These settlements address allegations that both companies participated in conspiracies to inflate prices and limit competition for generic prescription drugs. The funds will primarily compensate individuals and government agencies who overpaid for these medications, with a smaller portion allocated for litigation costs.
Both companies have agreed to cooperate in ongoing litigation against 30 corporate defendants and 25 executives. They will also implement internal reforms to ensure compliance with antitrust laws. A motion for preliminary approval of a $10 million settlement with Heritage was filed in the U.S. District Court for the District of Connecticut, while the $39.1 million settlement with Apotex awaits final signatures from all involved states and territories.
Ellison stated, "Minnesotans want to know why the cost of prescription drugs keeps going up. Well, look no further than the conspiracy of corporations and executives scheming to reduce competition, raise prices, and line their pockets at your expense." He expressed satisfaction that the settlements would return money to Minnesota residents and facilitate accountability for other conspirators.
The multistate coalition has filed three lawsuits as part of this antitrust litigation effort. The complaints are supported by evidence from cooperating witnesses, extensive document databases, phone records, and notes from industry meetings. These materials illustrate how industry executives allegedly colluded through social events and communications to establish illegal agreements.
The first complaint involves Heritage among other corporate defendants related to 15 generic drugs. Two former Heritage executives are cooperating after settling their cases. The second complaint targets Teva Pharmaceuticals along with major generic drug manufacturers. The third complaint is set for trial soon and focuses on topical generic drugs sold widely across the U.S., involving numerous corporate and individual defendants.
Minnesota joins several other states and territories led by Connecticut in pursuing these legal actions. Ellison encourages Minnesota residents to report any anticompetitive practices via an online Antitrust Report Form or by contacting his office directly.