3rd Complaint Filed in Generic Drug Price-Fixing Case

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Some 51 states and U.S. territories have filed their third complaint in Connecticut federal court stemming from an ongoing antitrust investigation into what is described as a “widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic drugs sold across the United States.” The complaint focuses on 80 topical dermatological drugs that account for billions of dollars in U.S. sales. The suit, which names 26 corporate defendants and 10 individual defendants, seeks damages, civil penalties, and actions by the court to restore competition to the generic drug market.

Connecticut attorney general William Tong, who leads the coalition of states and territories, says the topical drugs include creams, gels, lotions, ointments, shampoos, and solutions used to treat a variety of skin conditions, pain, and allergies.

“These generic drug manufacturers perpetrated a multi-billion-dollar fraud on the American public so systemic that it has touched nearly every single consumer of topical products,” Tong says. “Through phone calls, text messages, emails, corporate conventions, and cozy dinner parties, generic pharmaceutical executives were in constant communication, colluding to fix prices and restrain competition as though it were a standard course of business. But they knew what they were doing was wrong and they took steps to evade accountability, using code words and warning each other to avoid email and detection.”

Tong said the states’ case is built on “hard evidence from multiple cooperating witnesses, millions of records, and contemporaneous notes that paint an undeniable picture of the largest domestic corporate cartel in our nation’s history.”

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