Connecticut Attorney General William Tong has announced settlement agreements with Heritage Pharmaceuticals and Apotex Corp. that total $49.1 million in pending multistate litigation over unlawfully inflated drug prices. Tong is the lead attorney for most of the plaintiffs, who come from all 50 states and U.S. territories. The lawsuits target 30 corporate defendants and 25 executives for their alleged participation in conspiracies to increase drug prices and block competition for generic drugs.
Apotex agreed to a $39.1 million settlement, and Heritage agreed to a $10 million settlement. As part of their settlements, the drug companies have agreed to cooperate with the states to provide evidence to strengthen the cases, including witnesses, documents, and knowledge of the pharmaceutical industry. The companies also agreed to internal reforms to safeguard competition and obey antitrust laws.
The pending litigation stems from three antitrust complaints filed against pharmaceutical companies and their executives. The complaints led to lawsuits after an extensive investigation revealed witnesses, documents, and phone records detailing the conspiracy to raise drug prices and deter competition.
Each case focuses on a different set of generic prescription drugs that generated millions of dollars for the drug companies. The states are preparing for trial in the Connecticut District Court on one of the three claims concerning 80 topical generic drugs.
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