States bring new price-fixing suit against generic-drug makers

Attorneys general from more than 40 states filed a lawsuit in federal court in Connecticut on Friday, alleging the nation's largest generic drug manufacturers conspired to artificially inflate and manipulate prices for more than 100 different generic drugs.

Attorneys general from more than 40 states filed a lawsuit in federal court in Connecticut on Friday, alleging the nation's largest generic drug manufacturers conspired to artificially inflate and manipulate prices for more than 100 different generic drugs. Connecticut Attorney General William Tong said investigators obtained evidence implicating 20 firms. The new court suit—which also names 15 individual senior executives responsible for sales, marketing, and pricing—is the second that has been filed in the investigation. The first, filed in 2016, named 18 corporate defendants and two individual defendants. Two former drug company executives entered into settlement agreements and are cooperating with the attorneys general in the investigation. Investigators said the drugs covered in the suit account for billions of dollars of sales in the United States. The suit was filed by 43 states and Puerto Rico with Connecticut taking the lead in the probe. It is asking for a finding that the defendants’ actions violated federal and state antitrust and consumer protection laws and is seeking a permanent injunction preventing the companies from continuing the conduct. The suit also seeks reimbursement of profits from the actions and damages to be paid to the state agencies and consumers who were harmed by the drug company practices.