Virginia sues 20 drug makers over conspiracy to fix drug prices

Joining a bipartisan coalition of 44 states, Virginia Attorney General Mark Herring has filed a lawsuit against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers alleging a broad conspiracy to “artificially inflate and manipulate prices, reduce competition and unreasonably restrain trade for more than 100 different generic drugs.”

The lawsuit also names 15 senior executive defendants at the center of the scheme who handled sales, marketing, pricing and operations.

The alleged conspiracy increased prescription drug prices for individuals, private insurers, and Medicare and Medicaid.

Herring filed a similar lawsuit in 2016, against Teva Pharmaceuticals and a handful of other generic drug makers.

The complaint alleges that Teva, Pfizer and 18 other generic drug manufacturers engaged in a wide ranging, coordinated and systemic plan to fix prices and rig bids for more than 100 generic drugs.

The drugs at issue account for billions of dollars of sales in the United States, and the alleged schemes increased prescription drug prices for individuals, private insurers, and programs like Medicare and Medicaid. In some cases, the price of the drugs increased more than 1,000%.

“I’m sure nearly every Virginian has gotten sticker shock over the cost of a prescription at some point, and because of the illegal conduct we’re alleging in this suit, the generic alternative may not have offered much in the way of savings,” said Herring.

The drugs cited included antibiotics, antidepressants, contraceptives, and various other ones used to treat a range of diseases and conditions such as diabetes, cancer, HIV, and multiple sclerosis.

Herring filed a similar lawsuit in 2016 against generic drugmakers Heritage Pharmaceuticals, Inc., Aurobindo Pharma USA, Inc., Citron Pharma, LLC, Mayne Pharma (USA), Inc., Mylan Pharmaceuticals, Inc. and Teva Pharmaceuticals USA, Inc.

More details on the filing can be found here.