20 States Go After Generic Drug Firms for Price Fixing

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The attorneys general from 20 states have filed a federal lawsuit that alleges six pharmaceutical companies violated antitrust laws by conspiring to fix prices and allocate markets for various generic drugs. The lawsuit was filed against against Heritage Pharmaceuticals, Inc., Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA in federal court in Connecticut.

 

The lawsuit cites two drugs — doxycycline hyclate delayed release, an antibiotic, and glyburide, an oral diabetes medication. Their investigation, which is still ongoing and examining additional generic drugs, uncovered evidence of a broad, well-coordinated and long running series of conspiracies to fix prices and allocate markets for a number of generic pharmaceuticals in the U.S., a news release says.


he states allege that the misconduct was conceived and carried out by senior drug company executives and their subordinate marketing and sales executives. It further alleges that the defendants routinely coordinated their schemes through direct interaction with their competitors at industry trade shows, customer conferences and other events, as well as through direct email, phone and text message communications. “The states further allege that the drug companies knew that their conduct was illegal and made efforts to avoid communicating with each other in writing, or in some instances, to delete written communications after becoming aware of the investigation,” the release says.

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