Virgin Islands Attorney General Gordon C. Rhea joined a coalition of 50 states and territories on Thursday to announce two significant cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex. The settlements, totaling $49.1 million, resolve allegations that both companies engaged in widespread and long-term conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade concerning various generic prescription drugs.
As part of their settlement agreements, both companies have committed to cooperating in the ongoing multistate litigation led by Connecticut against 30 corporate defendants and 25 individual executives. They have also agreed to implement a series of internal reforms aimed at ensuring fair competition and compliance with antitrust laws, according to the press release
Also on Thursday, a motion for preliminary approval of a $10 million settlement with Heritage was filed in the United States District Court for the District of Connecticut in Hartford. Additionally, a settlement with Apotex for $39.1 million is pending and will be finalized and filed in the U.S. District Court once signatures from all necessary states and territories are obtained, the press release stated.
The settlements come as the states prepare for the first trial in Hartford, Connecticut, the release stated.
“Today marks a significant step toward accountability and fair competition in the pharmaceutical industry. The $49.1 million in settlements with Heritage Pharmaceuticals and Apotex Corporation underscores our commitment to combating price manipulation and protecting consumers. We are not only resolving past wrongs but also ensuring that these companies implement necessary reforms to promote compliance with antitrust laws. As we prepare for the upcoming trial in Hartford, our resolve remains steadfast in holding accountable those who seek to undermine fair market practices,” said Rhea.
Connecticut’s Assistant Attorney General Joseph Nielsen is the lead attorney for a coalition of nearly all states and territories filing three antitrust complaints starting in 2016. The first complaint included Heritage and 17 other corporate defendants, two individual defendants, and 15 generic drugs, the release stated.
Two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, have entered into settlement agreements and are cooperating with authorities. The second complaint was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. This complaint names 16 individual senior executives as defendants. The third complaint, which will be tried first, focuses on 80 topical generic drugs that collectively generate billions of dollars in sales in the United States. It names 26 corporate defendants and 10 individual defendants. Additionally, six more pharmaceutical executives have reached settlement agreements with the states and are cooperating to support the claims in all three cases, it said.
The cases originate from a series of investigations based on evidence supplied by several cooperating witnesses involved in different conspiracies. This evidence includes a vast database of over 20 million documents and a phone records database that contains millions of call detail records and contact information for more than 600 individuals involved in sales and pricing within the generics industry. Each complaint addresses a unique set of drugs and defendants, outlining an interconnected web of industry executives. These executives gathered at industry dinners, “girls’ nights out,” lunches, cocktail parties, and golf outings, while also communicating frequently through phone calls, emails, and text messages that facilitated their illegal agreements, the release stated.
Throughout the complaints, the defendants use phrases such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” to describe their unlawful practices aimed at discouraging competition, raising prices, and maintaining a culture of collusion. Among the records obtained by the states is a two-volume notebook that contains the contemporaneous notes of one of the states’ cooperating witnesses. This notebook documents his discussions during phone calls with competitors and internal company meetings over several years, it said.
In addition to the U.S. Virgin Islands, the coalition includes Puerto Rico, Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin
and Wyoming, it said.
If you purchased a generic prescription drug manufactured by either Heritage or Apotex between 2010 and 2018, you may be eligible for compensation. To determine eligibility, call 866-290-0182 or email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.
