States Say Generic Drugmakers Inflated Prices

Twenty states have filed a lawsuit against a group of pharmaceutical companies they say have conspired to keep the price of drugs artificially high. The lawsuit claims that the companies, led by Heritage Pharmaceuticals, reached out to competitors to make agreements on how to avoid competitive pricing. The other companies named in the suit include Aurobindo Pharma USA, Inc.; Citron Pharma, LLC; Mayne Pharma (USA), Inc.; Mylan Pharmaceuticals, Inc.; and Teva Pharmaceuticals USA, Inc. State attorneys general behind the suits warn that it could be the beginning of a larger legal action. The lawsuit alleges that drug company executives met at industry conferences and company-sponsored dinners where they would share pricing information. They also claim that the companies would divvy up customers rather than compete for business. The states’ lawsuit comes a day after the U.S. Justice Department filed criminal charges against Jeffrey Glazer, Heritage’s former CEO, and Jason Malek, the company’s former president. The company fired the two men, and have filed their own lawsuit against them.