A federal judge has denied a motion by pharmaceutical companies to dismiss central claims in an ongoing antitrust lawsuit over alleged price-fixing of generic drugs. Illinois Attorney General Kwame Raoul announced the decision, which allows key parts of the case to proceed.
Illinois and nearly all other states and territories have filed three lawsuits against several drug manufacturers and executives. The lawsuits allege that these parties conspired to inflate prices, limit competition, and restrain trade for generic drugs, impacting billions of dollars in sales across the United States. According to the complaints, these actions raised costs for health insurance markets, government programs like Medicare and Medicaid, and individuals paying out-of-pocket for prescriptions.
“Americans are tired of having to choose between paying for everyday necessities like rent or groceries and life-saving prescriptions,” Raoul said. “I am pleased with the court’s decision, and I will continue to stand with my fellow attorneys general to ensure that pharmaceutical companies and executives are no longer able to continue the illegal and immoral tactics that fuel health care inequity around the country.”
The defendants had sought summary judgment from the U.S. District Court for the District of Connecticut, aiming to dismiss claims regarding an overarching conspiracy among drugmakers as well as liability related to individual drug conspiracies. Judge Michael P. Shea rejected their request, stating that the states “marshaled a substantial bulk of evidence to support [their] allegations,” adding that “a reasonable juror could infer that sharing information with competitors, providing assurances that a generic drug maker would follow price increases, and refraining from poaching customers were widespread practices in the markets for the drugs at issue.”
This legal action is based on investigations using testimony from cooperating witnesses involved in various conspiracies, along with extensive document databases containing over 20 million records and phone data covering more than 600 individuals connected with pricing in the generics industry.
The first complaint was filed in 2016 against Heritage Pharmaceuticals along with 17 other corporate defendants, two individuals, involving 15 generic drugs. A second complaint followed in 2019 targeting Teva Pharmaceuticals plus 19 major generic manufacturers; it also names 16 senior executives. The third complaint focuses on 80 topical generic drugs representing billions in sales and includes 26 companies as well as ten individuals.
Several settlements have already been reached by this multistate coalition. Seven pharmaceutical executives have agreed to settle claims against them; Apotex paid $39.1 million while Heritage paid $10 million.
Consumers who purchased certain generic prescription drugs between May 2009 and December 2019 may be eligible for compensation through www.AGGenericDrugs.com or by calling toll-free at 1-866-290-0182.