Multistate Settlement Reaches Nearly $30 Million Over Generic Drug Price Fixing Allegations

Maryland Attorney General Anthony G. Brown has joined a coalition of 48 states and territories in announcing a $29.6 million settlement with generic drug manufacturer Glenmark. The settlement resolves allegations that the company participated in a broad and prolonged conspiracy aimed at artificially increasing prices, limiting competition, and unduly restricting trade for a variety of generic prescription medications. Consumers in the United States who purchased certain generic prescription drugs between May 1, 2009, and December 31, 2019, may be eligible for compensation as a result of this agreement. Maryland is set to receive $178,000 from the settlement funds.

The agreement with Glenmark includes provisions for the company to cooperate with ongoing multistate litigation against 33 other corporate defendants and 25 individual executives. Furthermore, Glenmark has committed to a minimum seven-year period of injunctive relief. During this time, the company will implement and maintain an antitrust compliance program, directly report any potential antitrust violations to the attorneys general involved, and institute internal reforms designed to foster fair competition and ensure adherence to antitrust laws. This resolution with Glenmark follows previous multistate settlements with Lannett, Bausch, Apotex, and Heritage, which collectively amounted to $66.95 million. These legal actions are part of a larger effort by states to address alleged anticompetitive practices in the generic drug market.

The legal actions initiated by the coalition of states and territories, beginning in 2016, have aimed to uncover an interconnected network of alleged collusion within the generics industry. Investigations have reportedly drawn upon evidence from cooperating witnesses, a substantial database of over 20 million documents, and extensive phone records. The complaints filed outline various sets of drugs and defendants, detailing an alleged pattern of communication and meetings among competing industry executives. Evidence suggests that terms such as “fair share,” “playing nice in the sandbox,” and “responsible competitor” were used to describe efforts to unlawfully curb competition and inflate prices. Notably, records obtained by the states include a detailed notebook with contemporaneous notes from a cooperator, documenting discussions about price fixing over several years. The first trial in these matters, focusing on 80 topical generic drugs, is anticipated to commence in early 2027 in Hartford, Connecticut.

Individuals who purchased generic prescription drugs manufactured by Glenmark, Lannett, Bausch, Apotex, or Heritage within the specified timeframe (May 2009 to December 2019) are encouraged to explore their potential eligibility for compensation. To ascertain eligibility or for more information, interested parties can contact 1-866-290-0182 (Toll-Free), send an email to info@AGGenericDrugs.com, or visit the website http://www.AGGenericDrugs.com. This settlement aims to provide restitution to consumers who may have been impacted by the alleged price manipulation. The multistate coalition involved in this settlement includes nearly all states and territories, signifying a broad governmental effort to ensure fair pricing and competition in the pharmaceutical market.

Article by Mel Anara, based upon information from the Maryland Attorney General’s Office.

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