Generic Drug Federal Antitrust Bid Rigging & Price Manipulation Litigation
Calcaterra Pollack LLP represents Suffolk County in County of Suffolk v. Actavis Holdco US, Inc., et al., 20 cv-40009 (SDNY), a federal antitrust lawsuit against 46 major generic drug manufacturers (“Defendants”). Suffolk County pays healthcare costs for individuals including County employees, retirees, inmates of County jails, Medicaid beneficiaries and Medicare beneficiaries. This includes paying pharmaceutical costs for generic prescription drugs. Suffolk County alleges that Defendants illegally restrained trade, artificially inflated and manipulated prices and reduced competition for generic drugs. The County alleges that as a result of Defendants’ illegal collusive activities, it paid artificially inflated prices for at least 130 critical generic drugs since 2011. These generic drugs include medications used to treat high blood pressure, bacterial infections, pneumonia, multiple sclerosis, glaucoma, epilepsy, rheumatoid arthritis and diabetes, as well as medications used in cancer treatments.
Generic drugs are sold for a lower price than the equivalent brand name drugs, offering greater access to healthcare to individuals. By 2010, generic drugs were, on average, 75% cheaper than the equivalent brand-name drug. Since generic drugs are cheaper than their brand-name equivalents, they make up the majority of prescriptions filled in the U.S., where 9 out of 10 prescriptions filled in the U.S. are for generic drugs.
The alleged anti-competitive conduct by the drug companies included entering into illegal agreements to simultaneously raise generic drug prices. The drug companies deals also eliminated price competition by agreeing to not compete in the same market or dividing up the market share, as long as their “competitors” did not charge less than the agreed upon price forcing purchasers such as government entities and individuals to pay the increased collusive price. As a result of a series of investigations into the defendants illegal antitrust activity, the U.S. Department of Justice has charged four of the named defendants who have agreed to pay over $220 million in criminal penalties.
The generic drug manufacturers named as defendants in Suffolk County’s lawsuit are: Actavis Holdco US, Inc.; Actavis Elizabeth LLC; Actavis Pharma, Inc.; Amneal Pharmaceuticals, Inc.; Amneal Pharmaceuticals LLC; Apotex Corp.; Ascend Laboratories, LLC; Aurobindo Pharma USA, Inc.; Barr Pharmaceuticals, LLC; Bausch Health Americas, Inc.; Bausch Health US, LLC; Breckenridge Pharmaceutical, Inc.; Citron Pharma LLC; Dava Pharmaceuticals, LLC; Dr Reddy’s Laboratories, Inc.; Endo International Plc; Fougera Pharmaceuticals Inc.; Generics Bidco I, LLC; Glenmark Pharmaceuticals, Inc.; Greenstone LLC; G&W Laboratories, Inc.; Heritage Pharmaceuticals, Inc.; Lannett Company, Inc.; Lupin Pharmaceuticals, Inc.; Mayne Pharma USA Inc; Mallinckrodt Inc.; Mallinckrodt LLC; Mallinckrodt Plc; Mutual Pharmaceutical Company, Inc.; Mylan Inc.; Mylan Pharmaceuticals, Inc.; Par Pharmaceutical, Inc.; Perrigo New York, Inc.; Pfizer, Inc.; Rising Pharma Holdings, Inc; Rising Pharmaceuticals, Inc.; Sandoz, Inc.; Pliva, Inc.; Sun Pharmaceutical Industries, Inc.; Taro Pharmaceuticals USA, Inc.; Teligent, Inc; Teva Pharmaceuticals USA, Inc.; Upsher-Smith Laboratories, LLC; West-Ward Pharmaceuticals Corp.; Wockhardt USA LLC; Zydus Pharma-Ceuticals (USA), Inc.