HARRISBURG, PA — Glenmark will pay $29.6 million and cooperate with continuing multistate litigation to resolve allegations that the generic drug manufacturer participated in a long-running price-fixing conspiracy, with Pennsylvania expected to receive about $1 million and some consumers potentially eligible for restitution.
Pennsylvania Attorney General Dave Sunday joined officials from 47 other states and territories in reaching the settlement, which also requires Glenmark to adopt internal reforms intended to support compliance with antitrust laws.
The states alleged Glenmark and other manufacturers coordinated to inflate generic drug prices, restrict competition and divide market share. The investigation began in 2016 and has produced several complaints involving dozens of pharmaceutical companies and executives.
Consumers who purchased certain generic prescriptions manufactured by Glenmark, Lannett, Bausch, Apotex or Heritage Pharmaceuticals between May 1, 2009, and Dec. 31, 2019, may qualify for compensation.
Eligibility information is available by calling 1-866-290-0182, emailing info@AGGenericDrugs.com or visiting www.AGGenericDrugs.com.
“This conspiracy worked against the very reason many Pennsylvanians choose generic drugs — for cost savings,” Sunday stated. He encouraged consumers who bought covered prescriptions during the eligibility period to determine whether they qualify for restitution.
The Glenmark agreement follows settlements with Lannett, Bausch, Apotex and Heritage totaling $66.95 million. Combined with the latest resolution, settlements arising from the litigation now total $96.55 million.
According to the states’ complaints, competing pharmaceutical executives communicated through telephone calls, emails, text messages and social meetings to coordinate prices and market conduct.
Investigators alleged participants used phrases including “fair share,” “playing nice in the sandbox” and “responsible competitor” to describe arrangements designed to limit competition.
Evidence obtained during the investigation included a two-volume notebook containing contemporaneous notes from a cooperating witness who documented conversations with competitors and internal company meetings over several years, according to the Attorney General’s Office.
The first multistate complaint named Heritage Pharmaceuticals, now operating as Avet Pharmaceuticals, 17 other companies, two individuals and 15 generic drugs.
A second complaint filed in 2019 targeted Teva Pharmaceuticals and 21 other generic drug manufacturers. A third case involves 80 topical generic drugs and names 26 companies and 10 individuals.
Under the settlement, Glenmark must assist the states in ongoing cases against 33 corporate defendants and 25 executives.
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