Generic Drug Price-Fix Case Targets Teva as Bellwether

Share

A Pennsylvania federal judge says that Teva will be the focus of the first trial over an alleged “overarching” industry-wide conspiracy to fix generic drug prices. Three other bellwether trials involving schemes to fix prices on three specific drugs will proceed on separate tracks, the judge said.

Bloomberg Law reports that the procedure will test the Teva case’s fitness for class action treatment on several individual drug conspiracies and explore the merits of an overarching conspiracy case.

The story reports that a sprawling multi-district lawsuit began with claims involving digoxin and doxycycline and has grown to include a wide range of suits involving 200 generic drugs and allegations of industry-wide conspiracies led by Heritage and Teva. “It now includes antitrust suits by healthcare companies, enforcement action by nearly every state attorney general, and proposed class actions on behalf of drug distributors, retail pharmacies, and payers such as insurers and pension funds,” Bloomberg says. “There’s also a separate federal price-fixing probe.”

Federal judge Cynthia Rufe rejected the drug companies’ argument in favor of starting with the Heritage case because the Teva case is “too massive and too complicated.” She said the industry proposal was not unreasonable, but she was not persuaded that it was a preferable way forward or that it would advance the litigation as effectively.

Read more