Briefs

Coalition of attorneys general secures $49.1M settlement with drug companies that inflated prices

November 1, 2024 Brooklyn Eagle Staff

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NATIONWIDE — A $49.1 MILLION SETTLEMENT WAS REACHED between major pharmaceutical companies who inflated the prices of several essential medicines and a coalition of 50 state attorneys general. NY Attorney General Letitia James and 49 others secured the first two settlements in ongoing cases against 30 companies, including Heritage Pharmaceuticals and Apotex, for their roles in a massive, long-running scheme to artificially inflate and manipulate prices, reduce competition and restrict trade for dozens of generic prescription drugs.

The companies in the scheme, some of which increased prices by 1,000%, manufactured essential medications to treat diseases and infections ranging from diabetes to cancer, epilepsy, HIV and heart medicines, to ADHD. Many forms of medicine were impacted, including tablets and capsules, creams and ointments.

The lawsuits allege these companies engaged in a broad, coordinated and systematic conspiracy to fix prices, avoid competition and rig bids for more than 100 different generic drugs. For example, Digoxin, an essential heart medication manufactured by Heritage, tripled in price, causing patients to pay hundreds of dollars more for the drug. The companies maintained an interconnected web of industry executives where these competitors met with each other during corporate and industry-related social events.

The settlement is contingent upon approvals and the obtaining of signatures and will be finalized and filed in U.S. District Court at a later date.

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