AG’s Office Announces $10 million Multi-state Settlement with Generic Drug Manufacturer Over Conspiracies to Inflate Prices and Limit Competition

Special to the Transcript

The Massachusetts Attorney General’s Office (AGO) announced a $10 million multistate settlement with Heritage Pharmaceuticals (Heritage). The settlement resolves allegations that the company engaged in widespread, long-running conspiracies to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs.

 As part of the settlement agreement, the company has agreed to cooperate in the ongoing multistate litigations against 30 corporate defendants and 25 individual executives. The company has further agreed to a series of internal reforms to ensure fair competition and compliance with antitrust laws. 

The $10 million settlement with Heritage was filed yesterday in the United States District Court for the District of Connecticut in Hartford.  

Those who purchased a generic prescription drug manufactured by Heritage Pharmaceuticals between January 1, 2010 and December 31, 2018, may be eligible for compensation. To determine eligibility, customers should call 1-866-290-0182 (Toll-Free), email info@AGGenericDrugs.com or visit www.AGGenericDrugs.com.

The settlement is part of ongoing litigation by a multistate coalition, led by the Connecticut Attorney General, related to allegations of generic drug price-fixing.

 The multistate coalition has filed three multistate antitrust complaints against pharmaceutical companies related to allegations of conspiracies to artificially inflate and manipulate generic drug prices, reduce competition, and unreasonably restrain trade with regard to numerous generic prescription drugs. The settlement also comes as the multistate coalition prepares for its first trial regarding these complaints. 

In 2017, the coalition filed its first  complaint, against Heritage, along with 17 corporate defendants and two individual defendants, in relation to 15 generic drugs. Two former executives from Heritage, Jeffery Glazer and Jason Malek, have since entered into settlement agreements and are cooperating. 

The second complaint was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The complaint names 16 individual senior executive defendants. 

The third complaint, to be tried first, relates to 80 topical generic drugs that account for billions of dollars of sales in the United States. The third complaint names 26 corporate defendants and 10 individual defendants. 

Six additional pharmaceutical executives have entered into settlement agreements with the multistate coalition and have been cooperating to support the coalition’s claims in all three cases.   

In Massachusetts, these matters are being handled by Assistant Attorney General David Mlaver, Economic Analyst Christina Braeuning, and Division Chief Will Matlack, all of the AGO’s Antitrust Division. 

Joining the Massachusetts Attorney General’s Office in making this announcement are the attorneys general of Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, 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, U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.