Attorney General Kathy Jennings announced cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex, involving a total of $49.1 million. The settlements address allegations that the companies engaged in conspiracies to inflate prices, manipulate competition, and restrain trade for generic prescription drugs. Both companies have agreed to cooperate in ongoing multistate litigation against 30 corporate defendants and 25 individual executives, as well as implement internal reforms to ensure compliance with antitrust laws.
Consumers who purchased generic drugs from Heritage or Apotex between 2010 and 2018 may be eligible for compensation. To check eligibility, individuals can call a toll-free number, email, or visit the provided website.
"This settlement addresses serious allegations of price-fixing and market allocation that have unfairly impacted consumers across Delaware and the nation," said Attorney General Jennings. "We are committed to ensuring that essential medications are accessible and affordable for everyone. As we move forward, we will continue to fight for the rights of consumers."
A motion for preliminary approval of the $10 million settlement with Heritage was filed on October 31, 2024. The $39.1 million Apotex settlement depends on participation by all necessary states and territories.
These developments come as states prepare for a trial in U.S. District Court in Connecticut related to antitrust complaints filed since 2016. The first complaint included Heritage among others; two former executives from Heritage have settled and are cooperating with authorities. A second complaint targets Teva Pharmaceuticals along with other major manufacturers, while a third focuses on topical generic drugs sold in the U.S., involving numerous corporate and individual defendants.
The cases stem from investigations based on evidence from witnesses at the core of various conspiracies. Investigators accessed over 20 million documents and phone records involving more than 600 sales personnel in the generics industry. Complaints reveal interactions among industry executives through various social events where illegal agreements were allegedly formed using terms like "fair share" to describe their actions.