AG Peterson Joins 39 Other State AG's as Plaintiff in Generic Drug Antitrust Lawsuit

States file amended complaint in lawsuit against six generic drug companies, alleging violations of federal antitrust laws and state antitrust and consumer protection laws

Nebraska Attorney General Doug Peterson today 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.

An amended complaint filed in the U.S. District Court for the District of Connecticut increases from 20 to 40 the number of plaintiff states in the lawsuit. The original complaint was filed in December 2016. The amended complaint 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.

In July 2014, the state of Connecticut initiated an investigation into 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.

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.

In addition to Nebraska, the plaintiff states in this lawsuit are Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington and Wisconsin.

Please click here to view a copy of the redacted amended complaint. The lawsuit was filed under seal, and portions of the complaint have been redacted in order to avoid compromising the ongoing investigation.To obtain information about how to protect yourself as a consumer, file a consumer complaint, or report a scam, please visit the Nebraska Attorney General’s Office, Consumer Protection Division website at www.protectthegoodlife.nebraska.gov or call (800) 727-6432.