Nearly $50 million in settlements have been reached to combat illegal price inflation by drugmakers, according to TN AG

NASHVILLE, Tenn. (WSMV) – The Tennessee Attorney General has announced settlements with corporate defendants Heritage Pharmaceuticals and Apotex totaling nearly $50 million related to allegations of illegal price inflation.

The outstanding $49.1 million settlements seek to resolve allegations that both companies engaged in widespread, long-standing conspiracies to artificially inflate and manipulate prices, restrict competition, and… Attorney General Jonathan Skrmetti announced that trade in numerous prescription generic drugs would be unreasonably restricted.

In part of the settlement, both companies agreed to cooperate in ongoing, cross-state litigation against 30 corporate defendants.

“When generic drug manufacturers stifle competition to drive up prices, consumers suffer,” Skrmetti said. “I am proud that my office is working with colleagues across the country to hold these pharmaceutical companies accountable. Given that the national settlements are over $49 million, this is a serious consequence for bad actions and a warning to other complicit companies that justice is at hand.”

The investigation into alleged price inflation began in 2016 in Connecticut, where the attorney general worked with witnesses to uncover a conspiracy to raise prices and stifle competition.

Skrmetti said this and other conspiracies were later confirmed by the discovery of documents and phone records detailing efforts to increase prices. Text messages and diary notes revealed that company executives planned their illegal schemes during lunches, dinners, golf outings and cocktail parties.

“If you purchased a generic prescription drug from either of these two companies between 2010 and 2018, you may be entitled to compensation. To determine your eligibility, call 1-866-290-0182 (toll free), email [email protected] or visit www.AGGenericDrugs.com,” the AG said.

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