Drug Companies Sued for Price Fixing by 44 States

"This may be the largest cartel case in the history of the United States" -Connecticut Attorney General William Tong

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(SALEM, Ore.) - In May, Oregon Attorney General Ellen Rosenblum joined 43 states in a lawsuit against Teva Pharmaceuticals and 19 of the nation's largest generic drug manufacturers alleging a broad conspiracy to inflate and manipulate prices, reduce competition and restrain trade for more than 100 different generic drugs.

The lawsuit, filed in U.S. District Court for the District of Connecticut, also names 15 individual senior executive defendants who were responsible for sales, marketing, pricing and operations.

The drugs include tablets, capsules, suspensions, creams, gels, ointments, and classes, including statins, ace inhibitors, beta blockers, antibiotics, anti-depressants, contraceptives, non-steroidal anti-inflammatory drugs.

These drugs treat a range of diseases and conditions from basic infections to diabetes, cancer, epilepsy, multiple sclerosis, HIV, ADHD, and more.

In some instances, the coordinated price increases were over 1,000%.

“These generic drugs make up a significant portion of the marketplace, and account for billions of dollars of sales in the United States.

"We allege that companies and executives conspired together to increase the prices of these important generic drugs that so many Americans depend on, and we all felt the effects.

"This alleged scheme meant higher prices for the health insurance market, Medicare and Medicaid, as well as individuals who depend on the drugs. We will not let these company take advantage of Oregonians,” said Attorney General Rosenblum.

The complaint alleges that Teva, Sandoz, Mylan, Pfizer and 16 other generic drug manufacturers engaged in a coordinated campaign to conspire to fix prices, allocate markets and rig bids for the different generic drugs.

The complaint lays out an interconnected web of industry executives where these competitors met with each other during industry dinners, "girls nights out", lunches, cocktail parties, golf outings and communicated via frequent telephone calls, emails and text messages that sowed the seeds for their illegal agreements.

The lawsuit seeks damages, civil penalties and actions by the court to restore competition to the generic drug market.

"We have hard evidence that shows the generic drug industry perpetrated a multi-billion dollar fraud on the American people. We have emails, text messages, telephone records, and former company insiders that we believe will prove a multi-year conspiracy to fix prices and divide market share for huge numbers of generic drugs," said Connecticut Attorney General William Tong.

"These are drugs that people in this country rely on every day for acute and chronic conditions and diseases from diabetes and cancer to depression and arthritis. We all wonder why our healthcare, and specifically the prices for generic prescription drugs, are so expensive in this country—this is a big reason why.

"This investigation is still in its early stages. We will not stop until these companies and the individuals who orchestrated these schemes are held accountable," added Attorney General Tong.

The complaint is the second in an ongoing, expanding multi-state investigation. The first lawsuit, still pending in U.S. District Court in the Eastern District of Pennsylvania, was filed in 2016 and now includes 18 corporate defendants, two individual defendants, and references 15 generic drugs.

In addition to Oregon, other states who joined the suit include: Alabama, Alaska, Arizona, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Puerto Rico.

Corporate Defendants:

1. Teva Pharmaceuticals USA, Inc.
2. Sandoz, Inc.
3. Mylan Pharmaceuticals Inc.
4. Actavis Holdco US, Inc.
5. Actavis Pharma, Inc.
6. Amneal Pharmaceuticals, Inc.
7. Apotex Corp.
8. Aurobindo Pharma U.S.A., Inc.
9. Breckenridge Pharmaceutical, Inc.
10. Dr. Reddy’s Laboratories, Inc.
11. Glenmark Pharmaceuticals Inc. USA
12. Greenstone LLC
13. Lannett Company, Inc.
14. Lupin Pharmaceuticals, Inc.
15. Par Pharmaceutical Companies, Inc.
16. Pfizer, Inc.
17. Taro Pharmaceuticals USA, Inc.
18. Upsher-Smith Laboratories, LLC
19. Wockhardt USA, LLC
20. Zydus Pharmaceuticals (USA), Inc.

Drugs listed in the complaint as subject to price-fixing and market allocation agreements:

1. Adapalene Gel
2. Amiloride HCL/HCTZ Tablets
3. Amoxicillin/Clavulanate Chewable Tablets
4. Amphetamine/Dextroamphetamine ER (aka Mixed Amphetamine Salts)
5. Amphetamine/Dextroamphetamine IR
6. Azithromycin Oral Suspension
7. Azithromycin Suspension
8. Baclofen Tablets
9. Benazepril HCTZ
10. Bethanechol Chloride Tablets
11. Budesonide DR Capsules
12. Budesonide Inhalation
13. Bumetanide Tablets
14. Buspirone Hydrochloride Tablets
15. Cabergoline
16. Capecitabine
17. Carbamazepine Chewable Tablets
18. Carbamazepine Tablets
19. Cefdinir Capsules
20. Cefdinir Oral Suspension
21. Cefprozil Tablets
22. Celecoxib
23. Cephalexin Suspension
24. Cimetidine Tablets
25. Ciprofloxacin Tablets
26. Clarithromycin ER Tablets
27. Clemastine Fumarate Tablets
28. Clomipramine HCL
29. Clonidine TTS Patch
30. Clotrimazole Topical Solution
31. Cyproheptadine HCL Tablets
32. Desmopressin Acetate Tablets
33. Desogestrel/Ethinyl Estradiol Tablets (Kariva)
34. Dexmethylphenidate
35. Dextroamphetamine Sulfate ER
36. Diclofenac Potassium Tablets
37. Dicloxacillin Sodium Capsules
38. Diflunisal Tablets
39. Diltiazem HCL Tablets
40. Disopyramide Phosphate Capsules
41. Doxazosin Mesylate Tablets
42. Drospirenone and ethinyl estradiol (Ocella)
43. Enalapril Maleate Tablets
44. Entecavir
45. Epitol Tablets
46. Estazolam Tablets
47. Estradiol Tablets
48. Ethinyl estradiol and levonorgestrel (Portia and Jolessa)
49. Ethosuximide Capsules
50. Ethosuximide Oral Solution
51. Etodolac ER Tablets
52. Etodolac Tablets
53. Fenofibrate
54. Fluconazole Tablets
55. Fluocinonide Cream
56. Fluocinonide Emolient Cream
57. Fluocinonide Gel
58. Fluocinonide Ointment
59. Fluoxetine HCL Tablets
60. Flurbiprofen Tablets
61. Flutamide Capsules
62. Fluvastatin Sodium Capsules
63. Gabapentin Tablets
64. Glimepiride Tablets
65. Griseofulvin Suspension
66. Haloperidol
67. Hydroxyurea Capsules
68. Hydroxyzine Pamoate Capsules
69. Irbesartan
70. Isoniazid
71. Ketoconazole Cream
72. Ketoconazole Tablets
73. Ketoprofen Capsules
74. Ketorolac Tromethamine Tablets
75. Labetalol HCL Tablets
76. Lamivudine/Zidovudine (generic Combivir)
77. Levothyroxine
78. Loperamide HCL Capsules
79. Medroxyprogesterone Tablets
80. Methotrexate Tablets
81. Mimvey (Estradiol/Noreth) Tablets
82. Moexipril HCL Tablets
83. Moexipril HCL/HCTZ Tablets
84. Nabumetone Tablets
85. Nadolol Tablets
86. Niacin ER Tablets
87. Nitrofurantoin MAC Capsules
88. Norethindrone/ethinyl estradiol (Balziva)
89. Northindrone Acetate
90. Nortriptylline Hydrochloride Capsules
91. Omega-3-Acid Ethyl Esters
92. Oxaprozin Tablets
93. Oxybutynin Chloride Tablets
94. Paricalcitol
95. Penicillin VK Tablets
96. Pentoxifylline Tablets
97. Piroxicam
98. Pravastatin Sodium Tablets
99. Prazosin HCL Capsules
100. Prochlorperazine Tablets
101. Propranolol HCL Tablets
102. Raloxifine HCL Tablets
103. Ranitidine HCL Tablets
104. Tamoxifen Citrate Tablets
105. Temozolomide
106. Tizanidine
107. Tobramycin
108. Tolmetin Sodium Capsules
109. Tolterodine ER
110. Tolterodine Tartrate
111. Topiramate Sprinkle Capsules
112. Trifluoperazine HCL
113. Valsartan HCTZ
114. Warfarin Sodium Tablets

The Oregon Department of Justice (DOJ) is led by Attorney General Ellen Rosenblum, and serves as the state’s law firm. The Oregon DOJ advocates for and protects all Oregonians, especially the most vulnerable, such as children and seniors.