Iowa Attorney General
11/05/2024 | Press release | Distributed by Public on 11/05/2024 11:27
Attorney General Bird Announces Settlements with Generic Drug Companies for Teaming Up to Raise Prices of Medications
DES MOINES-Iowa Attorney General Brenna Bird today announced two settlements with generic prescription drug manufacturers Heritage Pharmaceuticals and Apotex for teaming up to raise prices and limit competition.
The combined settlements total $49.1 million. The settlements resolve allegations that Heritage and Apotex partnered with a network of generic prescription drug companies to make medications more expensive for families and reduce options by limiting competition.
"Families should be able to buy the medications they need at a fair price," said Attorney General Bird. "But instead, bad actors have illegally forced them to pay more to treat allergic reactions, bacterial infections, hormone imbalances-even to reduce pain. I will continue working to prevent Iowans from illegal rip-offs."
Evidence of the schemes to inflate prices were obtained through investigations, witnesses, document databases, and phone records databases of more than 600 members of the generics industry. These investigations uncovered that company executives formed a network that made plans at industry dinners, "girls nights out," golf outings, and cocktail parties. They also communicated through frequent phone calls, texts, and emails.
The $10 million settlement with Heritage was filed on October 31. A settlement will soon be filed with Apotex for $39.1 million. As part of the settlements, both companies have agreed to cooperate in ongoing multistate litigations against other drug manufacturers, corporate defendants, and executives. The companies have also agreed to make changes to ensure fair competition and that they are following antitrust laws.
Iowans who purchased a generic prescription drug manufactured by Heritage or Apotex between 2010 and 2018 may be eligible for compensation. To determine eligibility, call 1-866-290-0182, email [email protected], or visit www.AGGenericDrugs.com.
Iowa joined the Connecticut-led coalition, along with 44 other states, including Alaska, Arizona, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, 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, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. They were also joined by the District of Columbia, Northern Mariana Islands, Puerto Rico, and U.S. Virgin Islands.
Read the full settlement for Heritage Pharmaceuticals here.
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For More Information:
Alyssa Brouillet | Communications Director
(515) 823-9112