AG Secures $49.1M in Drug Price-Fix Settlement

AG Secures $49.1M in Drug Price-Fix Settlement

Introduction

Consumers who overpaid for certain generic drugs may now be eligible for compensation from a $49.1 million settlement involving two pharmaceutical companies.

The announcement was made by the Ohio Attorney General as part of a broader effort to combat price-fixing in the generic drug market.

Manufacturers Accused of Market Manipulation

Apotex, based in Toronto, and Heritage Pharmaceuticals, located in Eatontown, New Jersey, were accused of participating in a coordinated scheme to inflate prices, limit market competition, and manipulate the generic drug market for profit. Heritage will contribute $10 million, while Apotex will pay $39.1 million under the settlement agreement filed in December 2016 in the U.S. District Court for the District of Connecticut.

Protecting Consumers and Restoring Competition

Calling the scheme a “conspiracy to cheat the system,” the Ohio Attorney General emphasized the state's commitment to restoring fair competition and ensuring accountability. He stated, “We won’t tolerate collusion that inflates drug prices and harms Ohioans who rely on affordable medication.”

Eligibility for Compensation

Consumers who purchased specific generic prescription medications between May 2009 and December 2019 may qualify for compensation as part of the settlement. Additional details regarding eligible drugs and the claims process are expected to be provided in the near future.

Multi-State Legal Action Targets Industry-Wide Collusion

Ohio joined a coalition of nearly every U.S. state and territory in pursuing legal action against 30 corporate defendants and 25 individual executives through three major antitrust complaints. The first complaint, filed in 2016, named Heritage, Apotex, and 16 other corporate defendants for their involvement in price manipulation involving 15 generic drugs. Two former executives from Heritage have settled and are cooperating with authorities.

Further Complaints Expand Scope

The second complaint, filed in 2019, named Teva Pharmaceuticals, Apotex, and several other leading generic manufacturers, alleging price-fixing and market allocation. A third complaint, filed in 2020, focused on price manipulation related to 80 topical generic drugs, identifying 26 corporate defendants and 10 individuals. Six executives have settled and are providing assistance in ongoing litigation.

Extensive Evidence Uncovered

The investigations rely on testimony from cooperating witnesses and a vast database of over 20 million documents and phone records. Evidence includes a two-volume notebook kept by a witness, along with coded communications such as “fair share” and “playing nice in the sandbox,” which were used to disguise illegal agreements.

Fighting Back Against Corporate Greed

This settlement represents a significant step in the nationwide fight against corporate collusion in the pharmaceutical industry. It underscores Ohio’s and its partners’ dedication to protecting consumers from unfair and unlawful business practices.