California Attorney General Rob Bonta has announced a $39.1 million settlement with generic drug manufacturer Apotex, as part of a broader effort involving 50 states and territories to address inflated drug prices and limited competition. The settlement, which follows an agreement in principle announced last fall, resolves allegations against Apotex for conspiring to manipulate prices of generic drugs.
Bonta emphasized his commitment to affordability for Californians, stating: “Since taking office, I have been committed to making the lives of Californians more affordable. As part of those efforts, my team and I have worked day and night to go after companies and individuals who engage in anti-competitive practices solely to increase their profits.”
Consumers who purchased certain generic drugs between May 2009 and December 2019 may be eligible for compensation. To determine eligibility, consumers can visit www.AGGenericDrugs.com or contact the provided toll-free number or email.
The list of affected medications includes Baclofen tablets for muscle spasms, Budesonide inhalation for asthma, Carbamazepine ER tablets for seizures, Glyburide-metformin for diabetes, Verapamil for high blood pressure, and Warfarin to prevent blood clots.
The settlement also involves Heritage Pharmaceuticals in a $10 million agreement. Both companies are cooperating with ongoing litigation against other corporate defendants and executives. They have agreed to reforms ensuring compliance with antitrust laws.
This legal action is part of a series of antitrust complaints initiated in 2016 by nearly all states and territories. These complaints target various drug manufacturers and executives accused of price manipulation and anti-competitive behavior across multiple generic drugs.
The investigations rely on evidence from witnesses within the industry, a large document database, phone records, and notes detailing communications among competitors that facilitated illegal agreements.
Attorney General Bonta is joined by attorneys general from numerous states and territories in this announcement.