Mercer Times

Attorney General Matthew J. Platkin, alongside a multistate coalition, has announced settlements and cooperation agreements with Heritage Pharmaceuticals and Apotex. These agreements total $49.1 million and aim to resolve allegations that the companies engaged in conspiracies to inflate drug prices, reduce competition, and restrain trade in the generic prescription drug market.

The settlements include cooperation from both firms in ongoing lawsuits against 30 corporate defendants and 25 individual executives. Consumers who purchased drugs from these companies may be eligible for compensation.

New Jersey is part of a coalition that has filed three antitrust complaints against generic drug companies since 2016, with Connecticut leading the litigation efforts. A $10 million settlement with Heritage was filed in the United States District Court for the District of Connecticut, while a $39.1 million settlement with Apotex awaits signatures from all necessary states and territories before finalization.

Both companies have agreed to implement internal reforms to ensure compliance with antitrust laws moving forward.

“Americans already pay the highest prices in the world for prescription drugs, and generic drugs are intended as a way to save on these health costs,” said Attorney General Platkin. “We are pleased that these companies have agreed to cooperate with our ongoing litigation against their colleagues in the generic drug industry.”

Cari Fais, Director of the Division of Consumer Affairs, commented on the issue: “Collusion to inflate generic drug prices is an unconscionable example of placing profits over people.” She emphasized that such schemes harm consumers and will not be tolerated.

Consumers who believe they purchased affected drugs between 2010 and 2018 can inquire about compensation eligibility by calling 1-866-290-0182 or visiting www.AGGenericDrugs.com.

Each lawsuit targets different sets of drugs and defendants. The first complaint named Heritage among others, involving 15 generic drugs. Two former executives from Heritage Pharmaceuticals have entered into settlement agreements.

Another lawsuit filed in 2019 targeted Teva Pharmaceuticals along with other major manufacturers. It accused them of inflating prices for numerous topical generic drugs.

Six pharmaceutical executives have settled with states involved in all three cases, providing support for claims built on evidence from cooperating witnesses and extensive document databases.

The complaints describe how industry executives allegedly colluded during social events like dinners and golf outings. An email exchange revealed discussions about expensive meals paid by rival companies, illustrating their high living standards amid alleged conspiracies.

Deputy Attorney General Isabella R. Pitt and Deputy Attorneys General Yale A. Leber represent New Jersey under Assistant Attorney General Brian F. McDonough's supervision.