FOR IMMEDIATE RELEASE
NEWS RELEASE
March 1, 2017
For More Information, contact:
Mike Lewis (334) 353-2199
Steven T. Marshall
Joy Patterson (334) 242-7491
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Alabama Attorney General
AG STEVEN T. MARSHALL JOINS WITH 39 OTHER AGS
IN FEDERAL GENERIC DRUG ANTITRUST LAWSUIT
States file amended complaint in lawsuit against six generic drug companies,
now alleging new violations of state antitrust and consumer protection laws
(MONTGOMERY)- Attorney General Steven T. Marshall announced today that
Alabama has joined a federal antitrust lawsuit alleging that six generic drug-makers
entered into illegal conspiracies in order to unreasonably restrain trade, artificially
inflate and manipulate prices and reduce competition in the United States for two
generic drugs.
This amended complaint increases from 20 to 40 the number of plaintiff states in
the lawsuit, which was initially filed in December 2016. The amended complaint also
adds claims of alleged violations of state antitrust laws – in addition to the alleged
violations of federal antitrust laws – in each of the 40 states, as well as state consumer
protection laws in most of the states, against the defendant generic companies Heritage
Pharmaceuticals, Inc., Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Mayne
Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc.
“On behalf of the consumers of Alabama, we are joining this fight against illegal
practices that artificially raise the prices of certain prescription drugs,” said Attorney
General Marshall. “The high cost of medications is already a burden that many can ill
afford to pay. As Attorney General, I pledge my vigilance and commitment to stop
illegal and inappropriate actions by pharmaceutical companies that make this problem
worse.”
In July 2014, the state of Connecticut initiated an investigation of the reasons
behind suspicious price increases of certain generic pharmaceuticals. The investigation,
which is still ongoing as to a number of additional generic drugs, generic drug
companies and key executives, uncovered evidence of a well-coordinated and long-
running conspiracy to fix prices and allocate markets for doxycycline hyclate delayed
release, an antibiotic, and glyburide, an oral diabetes medication.
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The complaint further alleges that the defendants routinely coordinated their
schemes through direct interaction with their competitors at industry trade shows,
customer conferences and other events, as well as through direct email, phone and text
message communications. The alleged anticompetitive conduct – including efforts to fix
and maintain prices, allocate markets and otherwise thwart competition – caused
significant, harmful and continuing effects in the country’s healthcare system, the states
allege.
The lawsuit was filed under seal in the U.S. District Court for the District of
Connecticut. Portions of the complaint are redacted in order to avoid compromising the
ongoing investigation.
In addition to Alabama, states participating in the lawsuit are Connecticut,
Arizona, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota,
Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York,
North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina,
Tennessee, Utah, Vermont, Virginia, Washington and Wisconsin.
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