AG Kaul Joins Coalition of 50 States in Filing 3rd Complaint in Ongoing Antitrust Price-Fixing Investigation into Generic Drug Industry

MADISON, Wis. –Attorney General Kaul joined a coalition of 50 states led in filing the third lawsuit stemming from the ongoing antitrust investigation into a widespread conspiracy by generic drug manufacturers to artificially inflate and manipulate prices, reduce competition, and unreasonably restrain trade for generic drugs sold across the United States.

This new complaint, filed in the U.S. District Court for the District of Connecticut, focuses on 80 topical generic drugs that account for billions of dollars of sales in the United States and names 26 corporate Defendants. The lawsuit seeks damages, civil penalties, and actions by the court to restore competition to the generic drug market.

“Wisconsinites shouldn’t have to pay more for their medications because prices are artificially inflated, rather than the product of fair competition in the market,” said Attorney General Kaul. “The Wisconsin Department of Justice is continuing to take action to fight anti-competitive practices.”

The topical drugs at the center of the complaint include creams, gels, lotions, ointments, shampoos, and solutions used to treat a variety of skin conditions, pain, and allergies.

The complaint stems from an ongoing investigation built on evidence from several cooperating witnesses at the core of the conspiracy, a massive document database of over 20 million documents, and a phone records database containing millions of call detail records and contact information for over 600 sales and pricing individuals in the generics industry. Among the records obtained by the States is a two-volume notebook containing the contemporaneous notes of one of the States’ cooperators that memorialized his discussions during phone calls with competitors and internal company meetings over a period of several years.

Between 2007 and 2014, three generic drug manufacturers, Taro, Perrigo, and Fougera (now Sandoz) sold nearly two-thirds of all generic topical products dispensed in the United States. The multistate investigation has uncovered comprehensive, direct evidence of unlawful agreements to minimize competition and raise prices on dozens of topical products. The complaint alleges longstanding agreements among manufacturers to ensure a “fair share” of the market for each competitor, and to prevent “price erosion” due to competition.

The complaint is the third to be filed in an ongoing, expanding investigation that the Connecticut Office of the Attorney General has referred to as possibly the largest domestic corporate cartel case in the history of the United States. The first complaint, still pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2016 and now includes 18 corporate Defendants, two individual Defendants, and 15 generic drugs. Two former executives from Heritage Pharmaceuticals, Jeffery Glazer and Jason Malek, have entered into settlement agreements and are cooperating with the Attorneys General working group in that case. The second complaint, also pending in the U.S. District Court in the Eastern District of Pennsylvania, was filed in 2019 against Teva Pharmaceuticals and 19 of the nation’s largest generic drug manufacturers. The complaint names 16 individual senior executive Defendants. The States are currently preparing for trial on that complaint.

Corporate Defendants:

1.           Sandoz, Inc.

2.           Actavis Holdco U.S., Inc.

3.           Actavis Elizabeth LLC

4.           Actavis Pharma, Inc.

5.           Amneal Pharmaceuticals, Inc.

6.           Amneal Pharmaceuticals, LLC

7.           Aurobindo Pharma USA, Inc.

8.           Bausch Health Americas, Inc.

9.           Bausch Health, US LLC

10.        Fougera Pharmaceuticals, Inc.

11.        G&W Laboratories, Inc.

12.        Glenmark Pharmaceuticals Inc., USA

13.        Greenstone LLC

14.        Lannett Company, Inc.

15.        Lupin Pharmaceuticals, Inc.

16.        Mallinckrodt Inc.

17.        Mallinckrodt plc

18.        Mallinckrodt LLC

19.        Mylan Inc.

20.        Mylan Pharmaceuticals Inc.

21.        Perrigo New York, Inc.

22.        Pfizer, Inc.

23.        Sun Pharmaceutical Industries, Inc.

24.        Taro Pharmaceuticals USA, Inc.

25.        Teligent, Inc.

26.        Wockhardt USA, LLC

Drugs listed in the complaint as subject to price-fixing and market allocation agreements:

1.           Acetazolamide Tablets

2.           Adapalene Cream

3.           Alclometasone Dipropionate Cream

4.           Alclometasone Dipropionate Ointment

5.           Ammonium Lactate Cream

6.           Ammonium Lactate Lotion

7.           Betamethasone Dipropionate Cream

8.           Betamethasone Dipropionate Lotion

9.           Betamethasone Valerate Cream

10.        Betamethasone Valerate Lotion

11.        Betamethasone Valerate Ointment

12.        Bromocriptine Mesylate Tablets

13.        Calcipotriene Solution

14.        Calcipotriene Betamethasone Dipropionate Ointment

15.        Carbamazepine ER Tablets

16.        Cefpodoxime Proxetil Oral Suspension

17.        Cefpodoxime Proxetil Tablets

18.        Ciclopirox Cream

19.        Ciclopirox Shampoo

20.        Ciclopirox Solution

21.        Clindamycin Phosphate Cream

22.        Clindamycin Phosphate Gel

23.        Clindamycin Phosphate Lotion

24.        Clindamycin Phosphate Solution

25.        Clobetasol Propionate Cream

26.        Clobetasol Propionate Emollient Cream

27.        Clobetasol Propionate Gel

28.        Clobetasol Propionate Ointment

29.        Clobetasol Propionate Solution

30.        Clotrimazole 1% Cream

31.        Clotrimazole Betamethasone Dipropionate Cream

32.        Clotrimazole Betamethasone Dipropionate Lotion

33.        Desonide Cream

34.        Desonide Lotion

35.        Desonide Ointment

36.        Desoximetasone Ointment

37.        Econazole Nitrate Cream

38.        Eplerenone Tablets

39.        Erythromycin Base/Ethyl Alcohol Solution

40.        Ethambutol HCL Tablets

41.        Fluocinolone Acetonide Cream

42.        Fluocinolone Acetonide Ointment

43.        Fluocinonide .1% Cream

44.        Fluocinonide Gel

45.        Fluocinonide Ointment

46.        Fluocinonide Solution

47.        Fluticasone Propionate Lotion

48.        Griseofulvin Microsize Tablets

49.        Halobetasol Propionate Cream

50.        Halobetasol Propionate Ointment

51.        Hydrocortisone Acetate Suppositories

52.        Hydrocortisone Valerate Cream

53.        Imiquimod Cream

54.        Ketoconazole Cream

55.        Latanoprost Drops

56.        Lidocaine Ointment

57.        Methazolamide Tablets

58.        Methylphenidate HCL Tablets

59.        Methylphenidate HCL ER Tablets

60.        Metronidazole Cream

61.        Metronidazole .75% Gel

62.        Metronidazole .1% Gel

63.        Metronidazole Lotion

64.        Mometasone Furoate Cream

65.        Mometasone Furoate Ointment

66.        Mometasone Furoate Solution

67.        Nafcillin Sodium Injectable Vials

68.        Nystatin Ointment

69.        Nystatin Triamcinolone Cream

70.        Nystatin Triamcinolone Ointment

71.        Oxacillin Sodium Injectable Vials

72.        Phenytoin Sodium ER Capsules

73.        Pioglitazone HCL Metformin HCL Tablets

74.        Prochlorperazine Maleate Suppositories

75.        Promethazine HCL Suppositories

76.        Tacrolimus Ointment

77.        Terconazole Cream

78.        Triamcinolone Acetonide Cream

79.        Triamcinolone Acetonide Ointment

80.        Triamcinolone Acetonide Paste

Attorney General Kaul joined the attorneys general ofAlabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Territory of Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, U.S. Virgin Islands, Vermont, Virginia, Washington, and West Virginia in filing the complaint.

https://www.doj.state.wi.us/news-releases/ag-kaul-joins-coalition-50-states-filing-3rd-complaint-ongoing-antitrust-price-fixing

NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. It has not been verified for its accuracy or completeness.