Golden State Today

California Attorney General Rob Bonta has announced cooperation agreements and settlements with Heritage Pharmaceuticals and Apotex, in collaboration with a coalition of 50 states and territories. The agreements, totaling $49.1 million, address allegations that the companies engaged in conspiracies to inflate drug prices and limit competition in the generic prescription drug market.

As part of these settlements, both companies have committed to cooperate with ongoing multistate litigations involving 30 corporate defendants and 25 individual executives. They will also implement internal reforms to ensure compliance with antitrust laws. A preliminary approval motion for a $10 million settlement with Heritage was filed today in the United States District Court for the District of Connecticut. The $39.1 million settlement with Apotex is pending signatures from all necessary parties before it can be finalized.

Attorney General Bonta stated, “When drug prices are inflated, it often forces patients to make impossible choices between essential medications and basic necessities, while undermining our healthcare system, which is meant to work for individuals, not corporations.” He emphasized the commitment of the California Department of Justice to combat anti-competitive practices that affect drug pricing.

The cases against these companies are based on investigations involving evidence from cooperating witnesses and databases containing millions of documents and contact records related to sales and pricing in the generics industry. The complaints highlight how industry executives allegedly colluded through social gatherings and communications to discourage competition and raise prices.

The first complaint included Heritage among other defendants, leading to settlement agreements with former Heritage executives Jeffery Glazer and Jason Malek. The second complaint involved Teva Pharmaceuticals along with major generic drug manufacturers. The third complaint focuses on topical generic drugs worth billions in sales within the U.S., naming multiple corporate and individual defendants.

Consumers who purchased qualifying generic prescription drugs between 2010 and 2018 may be eligible for compensation by contacting the provided resources.

Attorney General Bonta joined forces with attorneys general from numerous states including Alaska, Arizona, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Massachusetts, New York among others as well as territories like Puerto Rico.