Generic Pharmaceuticals Pricing Antitrust

DEFENDANT NAME: Actavis Elizabeth, LLC, Actavis Holdco U.S., Inc., Akorn, Inc., Apotex Corp., Aurobindo Pharma USA, Inc., Breckenridge Pharmaceutical, Inc., Citron Pharma, LLC, Dr. Reddy's Laboratories, Inc., Epic Pharma, LLC, Fougera Pharmaceuticals Inc., G&W Laboratories, Inc., Glenmark Pharmaceuticals, Inc., Glenmark Pharmaceuticals Inc., Heritage Pharmaceuticals, Inc., Hi-Tech Pharmacal Co., Inc., Impax Laboratories, Inc., Lannett Company, Inc., Lupin Pharmaceuticals, Inc., Mayne Pharma USA Inc., Morton Grove Pharmaceuticals Inc., Mylan Inc., Mylan Pharmaceuticals, Inc., Oceanside Pharmaceuticals, Inc., Par Pharmaceutical Inc., Par Pharmaceutical Company, Inc., Perrigo New York, Inc., Pliva, Inc., Rajiv Malik, Sandoz Inc., Sun Pharmaceutical Industries
STOCK SYMBOL:
CASE NUMBER: 16-md-02724
CASE NAME:
COURT: U.S. District Court for the Eastern District of Pennsylvania
STATUS: Active
CLASS PERIOD:
LEAD PLAINTIFF DEADLINE:
DATE FILED: 05/18/16
COURT LOCATION:
RELATED DOCUMENTS:

Complaint (Digoxin and Doxycycline) 01/27/17
Complaint (Direct Purchasers) 06/22/18

CONTACT:

Hagens Berman has filed multiple lawsuits against numerous generic pharmaceutical companies  for conspiring to increase and set prices on inexpensive, commonly used generic drugs.  The drugs that are the subject of the alleged conspiracy include drugs for the treatment of serious health conditions, such as heart failure, high blood pressure, and diabetes.  In some cases the market saw triple-digit percentage price increases, allegedly putting the products out of reach of patients who require them.

In a typical mature market for commodity products, such as generic drugs, sellers would compete aggressively for market share by reducing prices.  But the complaints allege the following:  defendants here entered into a “Fair Share” agreement, through which defendants agreed to fix and raise prices, rig bids, and allocate markets for many dozens (if not hundreds) of generic drugs.  To carry out this agreement, representatives of defendants communicated with their “competitors” constantly, through phone calls, emails, trade association meetings, and social events.  The conspirators knew their conduct was illegal, and took extensive measures to conceal their activities – including, in some instances, allegedly intentionally destroying evidence of their incriminating communications. 

The United States Department of Justice has opened a criminal investigation and has already secured guilty pleas from two high-ranking generic pharmaceutical company executives. The Attorneys General of 49 states have joined the multidistrict litigation, and they have announced that this “could be the largest cartel case in the history of the United States.” 

 

 


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10/16/18: Cases Upheld

Court denied motions to dismiss with respect to all but defendant Telligent regarding six drugs. Court granted leave to amend complaint against Telligent.

06/22/18: Complaint Filed

Direct Purchaser Plaintiffs file an additional Class Action Complaint alleging an overarching conspiracy across 24 defendants to set prices and allocate markets of generic pharmaceutical drugs.

04/07/17: Cases Consolidated

All cases consolidated in the Eastern District of Pennsylvania and assigned to Judge Cynthia M. Rufe.  In approving transfer, the Judicial Panel on Multidistrict Litigation noted that “between 2012 and 2015, [plaintiffs allege] the average market price for these generic drugs underwent significant increases that corresponded with meetings of trade associations,” and that plaintiffs’ allegations “stem from the same government investigation into price fixing, market allocation, and other anti-competitive conduct in the generic pharmaceuticals industry.”   

03/28/17: Motions to Dismiss

Defendants in first grouping of cases file motions to dismiss.

05/01/16: Complaints Filed

From May 2016 to August 2017, DPPs filed 37 complaints against 33 defendants covering 18 pharmaceuticals.

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