In a press release, Marylands’ Attorney General-Anthony G. Brown has announced two settlements totaling $49.1 million with Heritage Pharmaceuticals and Apotex, resolving allegations that the companies engaged in conspiracies to artificially inflate prices and restrict competition for various generic prescription drug
The settlements require Heritage and Apotex to cooperate with ongoing multistate litigation led by Connecticut, which is pursuing claims against 30 corporate defendants and 25 individual executives. Both companies have also committed to reforming their business practices to ensure compliance with antitrust laws. The settlement with Heritage, valued at $10 million, will be filed today in the U.S. District Court for the District of Connecticut. The $39.1 million settlement with Apotex will be finalized and submitted to the same court shortly. These agreements come as the plaintiffs prepare for the first trial in Hartford, Connecticut.
“It is outrageous for drug manufacturers to profit from Marylanders by illegally colluding to raise the prices of essential medications,” said Attorney General Brown. “People are more important than profit. Our office will not stand by while companies exploit Marylanders’ health for financial gain.”
The legal actions began in 2016 with a coalition of nearly all states and territories filing three antitrust complaints. The initial complaint targeted Heritage along with 17 other corporate defendants and two individuals, involving 15 generic drugs. Two former executives from Heritage, Jeffery Glazer and Jason Malek, have since settled and are cooperating with the plaintiffs.
A second complaint filed in 2019 named Teva Pharmaceuticals and 19 other major generic drug manufacturers, as well as 16 individual senior executives. The third complaint, which will be prioritized for trial, focuses on 80 topical generic drugs that generate billions in sales and names 26 corporate and 10 individual defendants. Six additional pharmaceutical executives have also entered settlement agreements and are cooperating with the states.
The cases rely on evidence from multiple cooperating witnesses, an extensive database of over 20 million documents, and a phone records database detailing communications involving over 600 key individuals in the generics industry. The evidence reveals a network of industry executives who allegedly conspired during various social gatherings and communications to manipulate pricing and share market revenues instead of competing as required by law.
Individuals who purchased generic prescriptions manufactured by Heritage or Apotex between January 1, 2010, and December 31, 2018, may be eligible for compensation. For eligibility inquiries, individuals can call 1-866-290-0182, email info@AGGenericDrugs.com, or visit www.AGGenericDrugs.com.
